CNNMoney launched Wednesday the Fear & Greed Index, a new tool that tracks how emotion is driving the stock market on a daily basis.
The Fear and Greed Index goes live alongside CNNMoney’s new investing section, which offers financial analysis and commentary from a combination of CNNMoney and Fortune reporters including Dan Primack, Paul La Monica and Stephen Gandel.
“For our growing global investing audience, we’ll cover the hot money of private equity and VCs, big banks and capital markets as well as real-time market analysis all in one place,” says CNNMoney’s Executive Editor, Chris Peacock, in a statement. “Additionally, CNNMoney’s innovative Fear & Greed Index captures in an eye-blink the underlying forces driving investors’ money moves.”
The Fear and Greed Index serves as investing barometer for financial professionals, traders and consumers using seven market indicators to track investors’ appetite for risk on a scale of extreme fear (0) to extreme greed (100). The higher the reading, the greedier the investor with “50” considered neutral.
CNNMoney then combines the indicators together for an equally weighted final index reading.
The seven indicators in the Fear and Greed Index are stock price strength, stock price momentum, stock price breadth, put and call options, junk bond demand, market volatility and safe haven demand.
Alongside the launch of the new investing section, La Monica’s “The Buzz” expands to include investing analysis from four more reporters.