Garner and Cramer went off the chart to talk irrational exuberance in the stock market

Cramer's charts reveal that investors' euphoria caused the stock market meltdown from CNBC.

 

Mad Money host, Jim Cramer, recruited experienced futures broker, Carley Garner, of DeCarley Trading in hopes of finding a logical explanation for recent volatility in the stock market. In the end, they found that irrational exuberance in January was a leading contributor to the February stock market fall-out.

 

"Betting against volatility is really just an extreme type of irrational exuberance because the VIX goes up when the market goes down. These VIX traders are the symptom, not the disease. The actual ailment is euphoria, which is why so many funds were foolish enough to make such a risky bet in the first place." - Jim Cramer

One of our recent issues of the DeCarley Perspective was featured on CNBC's Mad Money on February 28. The DeCarley Perspective is a publication distributed exclusively to DeCarley's brokerage clients. If you are interested in being part of the loop, open a trading account today!

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