- Volatility Dead ? ? ?

Discussion in 'Trading' started by Trendguy, Dec 8, 2010.

  1. Trendguy

    Trendguy

    Does anybody else see the volatility in the stock market & indexes very low ? Has volume died ?
    What's going on ? When will it get back to normal ?
    Bored ?
     
  2. wrbtrader

    wrbtrader

    Overall volatility in the Index futures has been declining since June but overall it's been doing such most of 2010. This is also confirmed via the VIX or VXX.

    It'll only return consistently when the next similar like 2008 financial crisis occurs or when the economy is healthy.

    Good years of trading (didn't have to look hard for trade opportunities) from 1996 to 2008. Now, you have to work a lot harder to find trade opportunities along with being a lot picky about what you trade if volatility is important to your trading plan.

    Mark
     
  3. Well, we do have 9.8% unemployment and 2000+ pages of new Finregs. [​IMG]
     
  4. MPK

    MPK

    We're heading into the holiday season look at the 2009 ES charts at this time, ranges were small (10000 vol chart). It will pick up in mid January this is normal and the last week of the year is horrible trading.
     
  5. market is dead. it's like after 12pm EST the market just dies..
    deadzone like afterhours.


    reason investors or retail traders and retail invsetors are not participating. as for institutions like funds and mutual funds or large fudn they don't buy or sell anything in the open market..they go through brokerage firm or via the company .. and don't participate in the daily or even market swings they are too big..they just make money on management fees..on their paper profits. and when these large market participant od buy or sell any shares it's not in the open market..they give their order to large brokerage like goldman sacks to find another large sucker to take theirs shares by phone and negotiated..the open market is too thin, ,even a tiny market order can crash this market like in may 6.
    mostly 100 share lots in stocks over $100 which is still $10,000