# Too Much Fear?

Canonical: https://stocksurgedaily.com/too-much-fear/

Hey, Ross here:

And let’s start the day by looking at a chart that lends support to my hypothesis that we’re due for a short-term bounce.

## **Chart of the Day**

![](https://stocksurgedaily.com/wp-content/uploads/2023/10/Screenshot-2023-10-05-at-8.36.01-AM.png)

This is the popular CNN Fear & Greed Index represented in chart form.

Right now, the index is sitting at 26 – bordering on “Extreme Fear”. Just a couple days ago, the index was in “Extreme Fear” territory.

But if you look at the last time the index last touched those levels in October 2022 and March 2023 _(red circles on chart)_…

You’ll notice the market shot up strongly right after.

Considering the S&P 500 and Nasdaq are still up 11.5% and 27.4%, respectively, this year…

I believe that the market fear is overblown – and this is a signal we’re likely due for a short-term bounce.

**Insight of the Day**

**There are smart ways to play a potential short-term bounce** **_(and not-so-smart ones)_**

If the market is due for a short-term bounce, the smart way to play it is to take positions in high-potential stocks and progressively move up your stop losses on the winners.

That way, once the bounce is over, and the market starts to come down again…

You’ll still make a nice profit even when it hits your stop losses _(cause you’ve moved them up beyond your entry point)_.

The not-so smart way is to keep holding on to those stocks even after the bounce is over – convincing yourself that they’re “sure” to keep rising.

You want to take the smart way…

To intelligently profit from what is likely only going to be a short-term bounce.

And the best strategy I know for doing that right now…

\*\*

[Is this one right here.](https://gamemasterinvesting.com/stealth-trades-5-order/)

\*\*

![](https://stocksurgedaily.com/wp-content/uploads/2023/05/image.png)

Ross Givens  
Editor, **_Stock Surge Daily_**