Goldman Sachs says nobody is trading, inactive trading environment is "abnormal".

[smallStops]

I think everyone is waiting for the big event tomorrow...announcement by ECB of QE.

Thanks for the reminder.
Some might want to "roll the dice" and bet big.

 

[JaiSreeram]

If market volatility is extremely low, does this suggest we’ve reached the top of the market? With no-one buying and no-one really selling, you would think as time wears on prices will have to come down?

 

[Visaria]

If market volatility is extremely low, does this suggest we’ve reached the top of the market? With no-one buying and no-one really selling, you would think as time wears on prices will have to come down?

not necessarily, why couldn't prices slowly drift up?

 

[Bob111]

If market volatility is extremely low, does this suggest we’ve reached the top of the market? With no-one buying and no-one really selling, you would think as time wears on prices will have to come down?

what is extremely low? vix is like 13 now. can t drop to 6(50+% more?) sure..why the f** not,with constant and permanent gvt intervention. it can probably go to f*** zero.
it's like trading OTC stocks. where is the low:?

 

[Arnie]

not necessarily, why couldn't prices slowly drift up?

I think this is the more likely scenario...a slow grind up

 

[Grandluxe]

what is extremely low? vix is like 13 now. can t drop to 6(50+% more?) sure..why the f** not,with constant and permanent gvt intervention. it can probably go to f*** zero.
it's like trading OTC stocks. where is the low:?

It went to 11 on Friday I think.....

 

[ras72]

Goldman’s Cohn Says Inactive Trading Environment Is Abnormal
By Michael J. Moore May 28, 2014 11:20 AM GMT-0400

Goldman Sachs Group Inc. (GS) President Gary Cohn said low volatility and interest rates that are holding in tight ranges have resulted in an “abnormal” trading market.

“The environment for all the firms is quite difficult right now,” Cohn, 53, said today at an investor conference in New York. “What drives activity in our business is volatility. If markets never move or don’t move, our clients really don’t need to transact.”

Citigroup Inc. Chief Financial Officer John Gerspach, 60, said yesterday that second-quarter trading revenue could fall as much as 25 percent from year-earlier levels, and JPMorgan Chase & Co. estimated a 20 percent drop earlier this month.

Low interest rates and the Federal Reserve’s program of quantitative easing have resulted in reduced volatility, Cohn said.

Goldman Sachs has responded to years of declining fixed-income trading revenue by cutting jobs and capital in the business, Cohn said, “We’re not just waiting for things to get better.

http://www.bloomberg.com/news/2014-...nactive-trading-environment-is-abnormal-.html

More job cuts on the trading desks...Oh well. What are you doing for summer?

I consider all banks or brokers mishaps and downturns reason to celebrate. Cheers.

ras72