https://www.bloomberg.com/news/feat...r&utm_term=171016&utm_campaign=bloombergdaily Good read - especially the comments from Blair Hull.
Honestly for day trader like me, I don't like such markets. very difficult to trade due to its wild swing, whipsaw, big bid offer spread, long candle, violent jerky movement. Anyway have to come up with better ways of profiting from such markets.
Yeah... they are too unpredictable. It's more like gambling if you day-trade on a day like that. What you should do, is look for value (long or short) and not over-leverage. Because you can lose your shirt very quickly. Spreads will be out of wack... don't go for the little moves... and, make sure you're aware of the risk and cover your ass!
OK. Index futures went down because today is the 30th anniversary. Happy 30th Diamond anniversary ! Seriously we need to be prepared when market really do down very very violently. We need to practice and practice because we need to polish the skills in trading very fast very violent market. All the strategies need to be tested and ready to use. It could be scalping / day trading futures, trading credit / debit call / put options on index / currency .... futures, mind must be highly agile to trade continuation and reversal signals because there will be lots of reversal signals
Technically...each time, it is Different. -- No two circumstances in life and all its collective variables are ever truly the same. Each day in life, like each trading chart, are truly unique like DNA. Generalizing and assuming things can be a killer.
"....On Friday I placed a bet that U.S. stocks would rally, on the thinking that the week’s 9 percent decline in the Dow had been overdone. Over the weekend, after studying trading charts and talking to Jack, I knew I was wrong....." Exactly like the present. Just like yesterday, 'buy the dips'