Volatility in ES/YM .. anyone notice?

Discussion in 'Trading' started by scriabinop23, Jul 26, 2007.

  1. Has anyone noticed y/y for now versus the same time this yr last, this is a MUCH MUCH more volatile time. 2%-3% moves not being unheard of.

    Any ideas -fundamentally- why? Is it the advent of portfolio margin? Anyone have create explanations? or is volatility always higher when markets are trading out of ranges ? (ie ... we are pushing new highs in ES, dow, etc)

    Interesting that ES volatility seems to exceed NQ (nasdaq 100), on a percentage basis, lately. Or at least ES volatility has blown up while NQ volatility has remained relatively unchanged.

    Whats different about the US markets in 07 versus 06, guys?
  2. IMO

    The most difference is that the bullish '06 end of year was a quiet, silent and easy market to highs with little corretions to the 50 EMA.

    Right now we have an aggressive acceleration into all-time highs and that works as volatilty trigger creating movement sideways.

    Of course, the addition of portfolio margin will cause that session like the one we had today will be more volatile than before with much more "margin selling" related.