Volatility Selling + Low Volumes = B-Wave Top The equity markets held their ground on Thursday as treasuries and precious metals sank deeper into the abyss along with the Euro as the U.S. Dollar rally kicked it up a notch. The name of the game on Thursday was “selling volatility.” Statistically, two weeks prior to options expiration is the time when front month volatility gets crushed. This could get upended or pushed out a bit if the markets remain “wishy-washy” towards the yes or no vote on military strikes in Syria. What did strike me were the methodical program traders that moved in today to bring volatility back down. Not that this is totally out of line, but the across the board “vol crush” may bounce back and bite the hand that feeds them. There is good reason for the uncertainty in the market at the moment. Whether or not we all agree or not doesn’t prevent the underlying concerns to evaporate. Volatility selling may turn out to not be the trade i
http://www.indicatorwarehouse.com/96401/volatility-selling-low-volumes-b-wave-top/
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