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This Is How Investors Feel After The Best Day In Three Years

Submitted by Tyler Durden on 10/08/2014 16:45 -0400

When the market is as broken as it is right now, the only way to make any "sense" of things is to lurch from one side of the boat to the other. Like today, when we got the biggest Nasdaq intraday low to high surge in two and a half years and the most violent snapback in the Russell 2000 since November 2011!

So where is investor sentiment?

Well at 4 (on a scale of 0 to 100), it is the lowest it has ever been, except for the days when the entire financial system was on the verge of failure, when it was 0.

In other words, investors - at least the carbon-based variety not the vacuum tube-driven algos, assuming there are any left - are in a state of complete shock! And with moves with today's, this is completely understandable.

To which all we have to say is: enjoy the whiplash dear retail investor, and hopefully your record fear quickly becomes record greed: otherwise all of the Fed's rigging and manipulating of every imaginable market just to get you back in will have been for nothing.

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Wed, 10/08/2014 - 16:48 | 5305319 JuliaS

Ebolish!

Wed, 10/08/2014 - 16:50 | 5305331 wallstreetapost...

doesn't feel like extreme fear to me... but hey, what do I know.

Wed, 10/08/2014 - 16:53 | 5305337 InjectTheVenom

"INVESTORS" LOFL

Wed, 10/08/2014 - 16:55 | 5305352 RaceToTheBottom

I don't think it is possible to find enough INVESTORS to even get a valid sample.

Wed, 10/08/2014 - 16:58 | 5305367 max2205

Short the rips......2% 5% or is it 10%.....good luck

Chop chop

Wed, 10/08/2014 - 17:12 | 5305424 flacon

The Fed had to "save" humanity (markets (Lloyd Blankfein)) today.

Wed, 10/08/2014 - 17:22 | 5305464 Keyser

I go into a meeting this morning and the market is in the red... An hour later the Dow is over 200!!! WTF, over....

Wed, 10/08/2014 - 17:53 | 5305597 whstlblwr

Well, good, extreme fear it's bullish! If people fear to travel or to shop, stocks should only go up, lol.

Don't worry the central banks are in complete control.

Wed, 10/08/2014 - 22:12 | 5306784 KnuckleDragger-X

We had to destroy the village in order to save it....

Wed, 10/08/2014 - 19:00 | 5305933 dirtyfiles

agree

kids check with your parents that used to invest in real market what is fear

how about 3 days in a row of 300-500 points market drop without any intervention only because Alan Greenspan's look and his briefcase or his body language right before FEDs meeting

Wed, 10/08/2014 - 17:01 | 5305338 TruthInSunshine

"To which all we have to say is: enjoy the whiplash DEER retail investor..."

Fixed.

*I wonder how many "traders" got stopped out yesterday AND today. LMAO.

Wed, 10/08/2014 - 17:04 | 5305388 pods

I think they call that "getting it in both ends" or for the older generation, the deluxe "you ain't from around here" canoe river ride package.

pods

Wed, 10/08/2014 - 17:07 | 5305398 TruthInSunshine

e*trade baby has short memory.

Wed, 10/08/2014 - 21:43 | 5306693 SAT 800

I just went short ES, basis DEC'14 @1962.25. so that's 10/08 globex.

Thu, 10/09/2014 - 07:57 | 5307700 SAT 800

position is in the money, already. Gold and Silver are being bought strongly right now; it's not short covering. somebody is nervous in t he service; somebody important.

Wed, 10/08/2014 - 16:49 | 5305324 VulpisVulpis

This CNN index is garbage anyway.

Notice the 'beta' at the top.

Seriously? CNN? Please.

Wed, 10/08/2014 - 17:06 | 5305401 Bell's 2 hearted

this sums up media nicely

http://www.youtube.com/watch?v=8slEPV9LyS0

Wed, 10/08/2014 - 17:23 | 5305476 Keyser

I want to know just when it became avant garde for the media to lie their asses off, 100% percent of the time... I mean really, WTF...

Wed, 10/08/2014 - 17:52 | 5305588 PrecipiceWatching

It started with Walter Cronkite, daily lying his ass off about the Vietnam War, and accelerated into cruise control during the takedown of Commie Hunter Dick Nixon for, in comparision to the serial crimes of the venal Clinton Crime Syndicate and those of the current RaceMarxist, a parking ticket.

Wed, 10/08/2014 - 18:00 | 5305627 Keyser

And I thought Walter was one of the good guys...

Wed, 10/08/2014 - 18:06 | 5305658 Super Hans

Nice post!

Wed, 10/08/2014 - 16:50 | 5305329 CHX

BAhahahahahahahaaaaa.

Wed, 10/08/2014 - 16:55 | 5305348 Barnaby

Investors R DUM, new from Price Waterhouse. Only $109.99 gets you a one-volume set of CDs that shows you how dumb you really are. Go to irdumb.club for more!

Wed, 10/08/2014 - 16:54 | 5305350 Yen Cross

I'm not surprised at the massive ramp today. This reaction just shows how high the bullshit has been stacked over the last couple of months, with regard to higher rates, and the state of the global and U.S. economies.

This move will be short lived, and I already covered my cable(gbp/usd) long for 100 pips. This pig is ready to pop, and there's nothing supporting macro growth. The Fed. is losing credibility faster than Mario Draghi taking a " lie detector" test.

I am surprised the Fed. was so candid about the stronger $ though. I expected a bit more hawkishness to push back rate hike concerns. Guess they wanted to play the currency side of the game. (more liquid)

Wed, 10/08/2014 - 17:06 | 5305395 Keltner Channel Surf

If I'm not mistaken, the pattern of the last several FOMC days has been a strong reversal of any move in the days following.

Wed, 10/08/2014 - 17:32 | 5305510 Yen Cross

The pattern in the usdx?(overbought) Yes I agree, and commented about such on Monday.

I bought cable just before the Fed. minutes because it fit my risk tolerance profile... It was within 100 pips of the 1.5950 low last week, and had already dropped an equal measured distance before the Fed. minutes announcement.

For me it was worth risking 100 pips for 100 pips (1:1 rr) because the trade was so near the bottom of the range .

Wed, 10/08/2014 - 18:03 | 5305648 Keltner Channel Surf

Good call. As a Russell trader, I missed the chance to hop aboard just after 2:00, given 80% of the time they take out both high and low stops on the day by 2:20, with the best entry point near VWAP. Such was the surprise level today, if you blinked you missed it, similar to Bernanke's "no Taper' head fake.

Wed, 10/08/2014 - 18:26 | 5305754 Yen Cross

It's a joy to talk with fellow technical traders. Thanks for sharing some thought.

I'm not a big equities trader. My guess is that if I overlayed RUT with some risk currencies and s/t bond profiles, we could find some good risk profiles. ;-)

You're probably looking to short RUT at some point tomorrow. Personally, I'd do it early. Take the $ and run... Watch the pattern develope on the s/t charts and hit it "hard" on Friday.

My 2 ¢

Thu, 10/09/2014 - 06:55 | 5307556 Keltner Channel Surf

Thanks. It seems trading "crosses" is world's different from what I do (pure technical daytrading, no overnight holds, using leveraged ETFs with precise entries/exits required), but probably took you many years, as I did, to wrap your arms around it. People think we just trade on a whim and make a living. If only.

As for RUT, the day after FOMC has been rewarding for shorting recently, but RUT algos lately like to tease with double or even triple entries, so I might scale in (not my usual practice), waiting at the top of the hourly Keltner, but if RVX (RUT's version of VIX) starts to smash lower, I'm out immediately, as that means the machines, backed by big bucks, are shooting for the 20 DMA.

Wed, 10/08/2014 - 17:06 | 5305403 ForWhomTheTollBuilds

I've always thought of stock market crashes as moments if "near infinite volitility". The greed and fear sides each getting suddlenly spirited, then failing, then more spirited, then failing again, until the entire thing just snaps.

Maybe I'm just simple.

Wed, 10/08/2014 - 17:14 | 5305438 BrosephStiglitz

Its going higher yet. The upward momentum hasn't stalled. Silver and gold will most likely continue to drop in the near short-term.

Wed, 10/08/2014 - 17:26 | 5305484 Keyser

Mr Yellen wants to take down the USDX, so metals should rise on this news...

Wed, 10/08/2014 - 22:14 | 5306789 Wahooo

Yep. BTFD.

Wed, 10/08/2014 - 17:58 | 5305613 Yen Cross

You need volume for "volatility".

When the rats start jumping, and the boat is plowing "stem(bow) to stern" is when you get "volatility". </sarc>

Wed, 10/08/2014 - 17:14 | 5305437 Bell's 2 hearted

"and there's nothing supporting macro growth."

yep.

Congress/POTUS doing zippo

if you recall, back in march/april 2008 W mailed out tax refund checks (i think totaled $150 billion). A waste of $$s, of course. But a tiny kick of the can nonetheless. This go round? All eyes on the central banks ... which can not do a damn thing macro wise.

We're going down (recession)

Just a matter of when ... now? or quarter or two?

Wed, 10/08/2014 - 16:56 | 5305354 enforcer92677

is there a deer picture for a whiplash extreme up day?

Wed, 10/08/2014 - 16:58 | 5305363 ptoemmes

It snapped back so hard its head ripped off. ISIL claimed responsibility for it.

Wed, 10/08/2014 - 17:17 | 5305445 Dungholio

But I hear it died with a massive erection at least!

Wed, 10/08/2014 - 17:01 | 5305376 Hubbs

Wait a minute. Yesterday the market declines 270 and then today back up because the FED whispered some sweet nothings? You've got to be kidding me! It is almost like the relief one would have after playing Russian roulette and the gun when click instead of the lights going out.

Wed, 10/08/2014 - 17:26 | 5305490 cro_maat

"Fed whispered" = many thousands of S&P 500 e-mini contracts, HFT vol suppression, currency manip. and other assorted shenanagins. No prob. when you have a digital printing press and direct lines to GS / JPM prop desks.

Wed, 10/08/2014 - 18:08 | 5305670 SokPOTUS

Really, they're making this sh*t too easy...

Wed, 10/08/2014 - 17:04 | 5305386 matt1021_98

unfortunately the fear & negative sentiment is a bullish market indicator

Wed, 10/08/2014 - 17:05 | 5305391 DarthVaderMentor

Suddenly rich again but infected with "economic ebola"? WHAT IS THE INCUBATION PERIOD FOR AN EBOLA CRASH AFTER THE WILD GYRATION SYMPTOMS OF CRASH DISEASE EMERGE IN THE MARKET NUMBERS?????

Wed, 10/08/2014 - 17:11 | 5305422 alexcojones

Amazing. Stocks fall 274 one day.

And stocks go back up 274 the very next day.

What would be the ODDS?

Wed, 10/08/2014 - 17:12 | 5305432 ebworthen

Insane ramp.

"Faith" restored.

Wed, 10/08/2014 - 17:13 | 5305433 papaswamp

While we were panicking over Ebola, ISIS, and wtf the Fed said.... iran seized control of Yemen.
http://shar.es/1moiiB

I thought the prez said Yemen was ok...

Wed, 10/08/2014 - 21:37 | 5306675 SAT 800

Very interesting. thanks for the heads up.

Wed, 10/08/2014 - 17:14 | 5305441 tommylicious

35 handle rips higher are not indicative of a healthy market...

Wed, 10/08/2014 - 17:42 | 5305561 booboo

Correct, Never get near an epileptic when they are having seizures.

Wed, 10/08/2014 - 20:06 | 5306262 smokescreen

healthy market... does not matter...play it while you can... thats it...it's insane but thats how simple it is.

Wed, 10/08/2014 - 17:26 | 5305495 BullyBearish

Coming soon to a news outlet near you, "The drop wiped out all of the FOMC minutes gain"

Wed, 10/08/2014 - 17:28 | 5305501 SpanishGoop

I fear greed.

Wed, 10/08/2014 - 17:32 | 5305515 Ward cleaver

If you fear greed than leave USA

Wed, 10/08/2014 - 17:34 | 5305519 jvetter713

So instead of only going long on Tuesdays and Fridays, are we now on the alternating day pattern?

Wed, 10/08/2014 - 18:07 | 5305664 economists_do_i...

The Fed fears Eurozone economic woes could spread to the U.S. *THAT* is the reason for the huge move to the upside?!?

Forgive me for being naive, but that sounds like a *bearish* statement to me that would have a negative impact on the economy, earnings, and share prices.

Days like today really make me shake my head in disbelief...

Wed, 10/08/2014 - 18:16 | 5305697 slightlyskeptical

Anyone and everyone involved in the markets should have known it was going to rip at the 1930 mark. The markets will not be allowed to drop more than 5% off the highs until interest rates have moderated. Should have a couple more round trips in these channels before all rescue attempts becomes ineffective.

Wed, 10/08/2014 - 20:00 | 5306226 smokescreen

totally agree !!!!!!!!!!!!

Wed, 10/08/2014 - 18:23 | 5305734 limacon

"All the kings men could not put Humpty-Dumpty back together again"

Trying to fix things , the Plunge Team made them worse .

You are seeing the Smile on the face of the volatility tiger . Just before eating all your money .

http://en.wikipedia.org/wiki/Volatility_smile

In other words , the rush for the exit is starting .

The algorithms see a massive buying opportunity , and will keep on chasing worthless assets up until it all comes crashing down .

Time for carbon algo's to jump ship .

See http://andreswhy.blogspot.com/2013/12/shock-horror-crash-of-2014.html

Wed, 10/08/2014 - 18:33 | 5305810 HUGE_Gamma

Fear and Greed Index is a joke

Wed, 10/08/2014 - 19:04 | 5305951 smokescreen

I hope the rest of u had as good a day as i have...there's nothing like making money for just tapping a few keys.

gotta love this trading the trend party!!!!!

Wed, 10/08/2014 - 19:10 | 5305981 booboo

I had a GREAT day producing hard assets, multiple jobs going at one time means duplicating my efforts. There is no such thing as easy money for a simpleton sonny but your kind is what keeps big money flush in the end. Keep stroking them keys though, it will take several more days to make up for the losses earlier this week and them to come.

Wed, 10/08/2014 - 19:54 | 5306195 smokescreen

wrong answer... simpleton....hmmm 2 college degrees magna cum laude in both 2 jobs 1 NYS professional lic. simpleton...those whom insult others without even knowing anything about them is well...simply a fool.

Wed, 10/08/2014 - 19:20 | 5306026 bid the soldier...

Sic Gloria Transit Transfer of Wealth

Wed, 10/08/2014 - 19:28 | 5306061 DebtSlaveZombie

I notice Zero Hedge didn't mention Alcoa earnings. Easily beat street estimates on revenue and earnings. But, if they would have missed on these metrics and the stock plummeted in after hours markets...ZH would have made it headline news. Being since Alcoa is the first to report and is the official "kickoff" to earnings season, please report the results even if it goes against the doom and gloom philosophy often thrown around here. This would be a much better site if I could see positive events being reported rather than the normal "buy guns, gold and grain and head to the cave" type stuff. That being said, short silver on this spike as this is a textbook deadcat bounce. Enjoy earnings season everyone...

Wed, 10/08/2014 - 19:47 | 5306157 SilverCoinLover