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by historical definition a 40%-50% pullback is considered a "crash" Funnily, back in 1930's with this great market "crash" all it was was a simple pullback from the frenzy buying. Market just went back to it's range before the frenzy that lasted couple of years.

investment banks ? Sure, depends on client quality. If you're a bad trader then why should i forward you to others if i can be your CP :)

Do you have the information about dealer option positions ? how much puts are sold/ bought and how much calls are sold/bought ? Isn't basis spread simply the difference in short term interest rates ? what does that have to do with delta/gamma of an option? the difference in futures vs spot...

:D

Good points. However, if something is too obvious it tends to move in the opposite direction. Like the German (and most of europe actually) 10y yield in the summer months. It will be interesting to witness how the whole debt situation gets resolved. It's a popular opinion nowadays that...

HF trading is yes, almost fully automated otherwise it can't be called HF simply because human brain can't act as fast. You think MMkers are making money by trying to capture the spread of the underlying when the spreads are near zero across most markets (most popular ones anyway)? Dude, market...

What exactly is that you are asking ? Does delta/gamma hedging matter ? Sure. But can you identify WHO bought and WHO sold options ? Who is going to lose the trade ? Dealers positions are the opposite of a clients positions.

what do you mean lost it's edge ? Many HF traders are using TT. Do explain please. I think you have a different definition for MM'ing

Sure, declining rates and QE are repricing the overall yield on investments across the board which makes the earnings yield also go lower (thus higher stock prices). This time is different in what ? That we won't see a decline in stock prices ? That's not what i hear. All i hear is that...

That's the thing, everyone and their mother expect a fall/crash/crisis, so betting on the downside becomes very crowded. Path to rationality is a very resistant process. Because it FEELS hugely asymmetric environment then "old school thinking" traders use small stops and big take profit orders...