Fear Spikes to Extreme as Tech Crumbles — Defensives Catch the Bid
Scale In Protected. Money is rotating hard out of tech and into defensives today, and the numbers back a cautious but still-invested stance.
October 22, 2026 at 6:00 PM EDT
Justification
Money is rotating hard out of tech and into defensives today, and the numbers back a cautious but still-invested stance. The Fear and Greed Index dropped to 20, signaling extreme fear, while the VIX rose to 19.0 — still below 20, which keeps option premiums relatively cheap. Stock valuations remain elevated, with the forward price-to-earnings ratio at 18.8 and the trailing P/E higher than 76 of every 100 months since 2006. Buy protective puts on tech exposure and consider trimming into Consumer Staples and Utilities, which led today.
Since the Last Issue
- Fear and Greed Index fell from 21 to 20, crossing into Extreme Fear territory since the prior issue
- VIX rose from 18.8 to 19.0 and stress score jumped from 0.207 to 0.321 since the prior issue
📡 Today's Opportunity Radar: XLU · ITB · KRE. Full ideas in the Opportunity Radar section below.
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