What Is Driving The Market Right Now According To Mainstream Media

Tyler Durden's picture

We are sure somewhere deep in the bowels of mainstream media's list of 'personalities', they will find a bullish (contrarian) excuse for the fact that such a mainstream media channel as CNN has expressed the emotion driving the market right now is... "Extreme Greed." For the rest of the 'irrational' investing public (who were all selling last month), it is time to watch in awe as yet another self-created spectacle of insanity unfolds (with no one seeing it coming).


Via CNN Money


CNN Money's model consists of 7 indicators...


We can only imagine the Fed is in full panic mode by now...

The Fed realizes investors do not act rationally... blowing up their models entirely...

“In a world of rational expectations, asset prices adjust and that’s it,” Mr. Williams said. ” He added, “but if one allows for limited information, the resulting bull market may cause investors to get ‘carried away’ over time and confuse what is a one-time, perhaps transitory, shift in fundamentals for a new paradigm of rising asset prices.”


Mr. Williams explained that it appears to be the case that investors, on balance, look at where a given market has been heading and assume that pattern will persist. Rapidly rising markets fuel the belief the good times are here to stay, while market blowouts generate such pessimism that investors cease to act as if prices will rise again.


“The recognition that people behave in this way can move us a long way closer to understanding how asset price booms and busts can emerge and how policy actions could influence that process,” he said.

So in summary... It's entirely circular...

The Fed must blow bubbles because otherwise irrational investors get "carried away" and inevitably crash the markets...


Ultimately it seems clearer and clearer that, as Williams himself opines "financial stability is just as important as pursuing price stability and growth."

h/t @Stalingrad_Poor

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max2205's picture

Today is so weird

slaughterer's picture

Tomorrow, Tuesday, fairly large POMO, greed meter goes above 98.  Unless Goldman lobs in a "black swan" to save their HF clients.  

firstdivision's picture

I feel like a 'case of the Tuesday's' will not materialize tomorrow.  No data to support it, just a tinggling I get in my balls sack.

flacon's picture

Today at lunch I'm eating a $1.34 bacon cheese burger from McDonald's "NINETY NINE CENT" menu. LOL! You have to understand that $0.99 is cheaper than $1.34, but it's still on their 99 cent menu. It takes a pH Dee from an accredited Ivy League university to NOT see what I see. 

DoChenRollingBearing's picture

I wonder if we have just started in the Worldwide Crack-Up Boom?

SAT 800's picture

Yes. Don't you have any hard questions?

Xibalba's picture

VXX Hulk Smash!   Gonna make an encore?

Vampyroteuthis infernalis's picture

The question is who if feeling the "Extreme Greed". My guess is that it is not average Joe sixpack. It is the insiders.

InjectTheVenom's picture

Chris Matthews , is that you ?

slaughterer's picture

How often has that tingle been correct?

firstdivision's picture

As often as a broken clock.  Sometimes worse during the summer season as I cannot feel the tingle from the sticking to my thigh.

Theosebes Goodfellow's picture

Not to be the one to piss in anyone's Cheerios, but since when has CNN had ANY business acumen to speak of? What's the old adage about teaching a pig to sing?

Headbanger's picture

Nope..    It should be The Stupidity Meter.


Cobra's picture

Agreed. They have the colors backward.

smlbizman's picture

so are you telling us that the last million tuesday, data supported it?...

SAT 800's picture

Me too; already went short the S&P today. the chart sucks. this is a toppers, topped out, top of a topped out market. Pure blow off baloney.

firstdivision's picture

Still sitting on some fake volatility I bought thanks to the manipulated ETF's that are 'priced' off the VIX.  So in short, I'm gonna lose some dollars, but I find this loss more entertaining that on horses of courses.


LetThemEatRand's picture

The greed meter goes to one hundred and eleven.

flacon's picture

So was last Friday, and last Thursday, and tomorrow is Turbo Tuesday, and Wednesday is set up for Turbo Thursday in anticipation of next's weeks Turbo Tuesday.  F'n damn! 

Obchelli's picture

Why? IT's like 1900 other days since 2009 Low. Market just relentlessly doing it's own thing going up driven by Kevin Henry Buy S&P at Market order...

Sudden Debt's picture

Towers of Babel can be build right into the sun. for sure.

Stoploss's picture

Two auctions today. SSDD.

It's a FED market. As long as they exist, the market will never go down.



They crossed a line a while back. It's beginning to settle in a bit.

Bananamerican's picture

"Zimbabwe Janet" doesn't have quite the same ring to it

flacon's picture

Even if it goes down, it will be spun as "neg'tve GROWTH in asset prices". 

BeetleBailey's picture

Zimbabwe DAMMIT Janet! Much more catchy....

ThisIsBob's picture

There is no place else for cash.  But cash is fickle so you have to watchit.

orangegeek's picture

"financial stability is just as important as pursuing price stability and growth."


what genius.  but what follows is the contradicting behavior - instability and unstable prices.

symtex411's picture

surely the short covering is coming to an end, then what will levitate this market highter?

DavidC's picture

That'll be when the REAL buyers come in.


(sarc off)

Dr. Engali's picture

A little fake fear will be introduced to intice more shorts.

slaughterer's picture

Short ratio is fairly high on major indices.  I do not think shorts have a chance without some induced fear or technical confirmation of a reversal.   

fonzannoon's picture

The fed is going to come out next week right around 2k S&P and talk about raising rates soon. 

disabledvet's picture

We'll that's just it isn't it..."how does the Fed lower rates from here?"

I say they stay with the Taper and "let the economy take over." The markets will do what the markets will do but so far all I see are poll numbers that say "botched recovery."

slaughterer's picture

All the sidelines $$ poouring into post-split AAPL now that it is affordable to the normal man.  How long till TBTF pulls the rug out from these new AAPL positions?

Dr. Engali's picture

The fed would be in full panic mode if this wasn't already pre-planned. Get the people back in the 'market' for one final ass raping and let the system die by it's major flaw, greed, then people will be screaming for .gov to intervene.

macambaman's picture

As Dennis Gartman would conclude "From the lower left to the upper right". That's bullish so I will go buy more stocks.

SystemOfaDrown's picture

"Extreme Insanity"Index is more accurate.

GrinandBearit's picture

IMO, there are no humans left to sell.   

The computers control everything now. 

They do not feel pain, pity or remorse and will absolutely not stop ever, until we are dead. 

Bunga Bunga's picture

Don't worry, Goldman Sachs will just set the target to 120.

Colonel Klink's picture

Funny LIES wasn't on the meter.  Possibly because the media is responsible for repeating them rather than actually checking the facts, then reporting objectively and honestly.

what's that smell's picture

the only thing this parabolic blow-off is missing is a parabolic blow-off.

how crazy can crazy get? enjoy.

DOW 20,000 : S&P 2200 : NASDAQ 5,000 : QQQ 100 : VIX 8.50