Friday, October 24, 2014
WHAT IS THE MARKET PIDDLING ITSELF ABOUT? An interesting poll at vixandmore
Vixandmore - here's what people are worried about. I've decided to start following Bill Luby again, now that I have a clue what $VIX actually means.
And he posted something last week that was very interesting. This chart:
shows you how mind-numbingly stupid this market was last week.
Let's go through the stupidism one at a time:
21.6% of people were scared of the end of QE and the "Fed safety net".
That's because they don't understand that the end of QE means monetary normalization, which is a good thing. And it means Janet Yellen has decided the US economy is strong enough to start taking the training wheels off, which is a good thing (as long as you're not one of those clowns who thinks he's so much smarter than Janet Yellen). So 21.6% of the market are morons.
Another 15.5% of people were scared of the Ebola virus.
That's because they don't understand that Ebola only spread in Dallas because Presby Hospital's management were criminally incompetent assholes (really, in my country they would be under investigation right now) who forced nurses to use insufficient equipment. Trust me, the CDC is now coming down on the entire health care industry like a ton of bricks.
So 37.1% of the market are morons.
Another 15.2% of people are scared because TA.
They're also morons. No explanation required. If they're scared based on the 200SMA, they're simply morons.
So 52.3% of the market are morons.
Another 9.4% of people are scared because of a weak US economy.
They're also morons. Read New Deal Demoncrat and Calculated Risk, and get yourself some real economic data instead of the bullshit that that fucking clown Joe Kernen spouts out of his ignorant Republican mouth on CNBC.
So 61.7% of the market are morons.
OK, the next 7 things in the list are things you might want to be worried about. But only 38.3% of the market are worried about them.
Thus, by math, the market had 161% more fear in it than it should have had.