This is a classic characteristic of a Fed-induced bubble. The Fed's own Empire State Index fell short of expectations, but stocks leaped higher on the news. Stocks left bad news in Asian markets in their tracks, and used some good news in Europe to leap higher still. Now, this news is sending stocks into the rafters in expectation that the Fed is less likely to reduce its debt monetization scheme on Wednesday. When all news is perceived as good news, and no news introduces thoughts of risk, then all news leads to higher prices. When all thought of proper pricing is discarded, and even the slightest dip sends investors scrambling to buy more, this is textbook bubble mentality! The Dow is up more than 130 points in just the first hour of trading!
