Retail investors often buy more when the market falls and sell some exposure when the market rises. The pattern is never perfect, but over time KOSPI returns and retail net-buying can form a useful baseline.
Fear
A fear zone appears when the market falls but retail net-buying is much weaker than usual, or when retail investors sell into weakness. It suggests that the willingness to buy dips has faded. That can happen near market lows, but it is not an automatic rebound signal.
Greed
A greed zone appears when retail net-buying becomes unusually strong after an up-move. It can signal late chasing behavior. In a strong earnings cycle, however, a greed reading can persist, so it should be read with fundamentals.
How to use it
- Use it as a psychology thermometer, not a trading signal.
- Read flow anomalies with news, earnings, rates, and FX.
- Weekly readings can be more stable than daily readings.