Tight Ranges

[Brandonf]

Quote from Sarasota:

Any theories as to why Mondays for the last several months have been in a tight range?

Volatility reverts to its mean, everything does on Wall Street. Volatility levels are still historically high, they are working their way back to the average.

Brandon

 

[Pabst]

Quote from Brandonf:

Volatility reverts to its mean, everything does on Wall Street. Volatility levels are still historically high, they are working their way back to the average.

Brandon

That sums it up Brandon. I keep telling guys, NEVER AGAIN will you see those 2000-2002 type of index ranges on a day in day out basis. Just like gold had entire years with ranges smaller than single days it had in 1980 we'll have years smaller than those big weeks in early 2000.

 

[damir00]

Quote from Brandonf:
Volatility levels are still historically high

not sure about that. normalizing trading ranges to price shows volatility (actual, not expected) at historically very low levels on both Dow and SPX. what i find fascinating is put buying is at extremely high levels relative to the amount of volatility present.

 

[Sarasota]

Quote from estrader:

Not only Mondays. Every day almost for the past year. This is due to low volatility that is due to everyone sitting on sidelens, and no major market moving mood existing. Because the war on Iraq is out of the picture, the dot com hysteria is gone and we are frankly living in very boring time right now as far as market dynamics is concerned. The world has gotten used to terrorist threat, so that is not a volatility factor either, save for a major terrorist attack or capture of UBL. That however will only cause a short spike. Until everyone licks up their wounds and forgets the roaring 90's and new bubble emerges, we may not see much dynamics in the market.

Actually, I like these trading conditions. I am doing quite well, but as I said before, I think Monday's are absolutely the worst days to trade. I also feel the best days to trade are now on Fridays.