Volatility is Back..

After a Summer with limited meat on the bone, range and thrust are back. The chatter picked up about how the nature of the markets has changed which meant we were close to being back to what passes as "normal" in trading.
 
After a Summer with limited meat on the bone, range and thrust are back. The chatter picked up about how the nature of the markets has changed which meant we were close to being back to what passes as "normal" in trading.


Yeah we have had a few days of volatility, but the markets could go back to sleep again any time they feel like.

I think historically the S&P has a bear market every 3.5 years (on average), and it's been way longer than that since the last one.

So for now the market isn't 'normal'.

Volatile bear markets and the volatile rallies that come after as the market recovers back are when traders can make the most money.
 
Yeah we have had a few days of volatility, but the markets could go back to sleep again any time they feel like.

I think historically the S&P has a bear market every 3.5 years (on average), and it's been way longer than that since the last one.

So for now the market isn't 'normal'.

Bear markets and the rallies that come after as the market recovers are when traders can make the most money.
I agree..
 
What is strange is the liquidity (Depth). Beside holidays and news events there used to be at least 1000 orders standing at each price on the ES. However these days it's a mere 500 orders standing at each price ...
 
What I feel is strange is the liquidity. Pre Holiday on my DOM the ES had at least 1000 orders standing at each price. However these days there is something like 400 orders standing at each price ...
I'm guessing it's because you didn't roll the contract yet..
 
I'm guessing it's because you didn't roll the contract yet..
Aha. It's done. I trade DEC 16 ES since Monday. Did you have a look, at least ? I always plot current and next contract volume on my screen to trade the most liquid one.
 
Aha. It's done. I trade DEC 16 ES since Monday. Did you have a look ?
Hmm... Interesting. My DEC shows the higher number. The Sept is showing the 400ish on mine as well. I've forgotten to roll in the past and thought that might be the reason. :)
 
Hmm... Interesting. My DEC shows the higher number. The Sept is showing the 400ish on mine as well. I've forgotten to roll in the past and thought that might be the reason. :)

Yes DEC is more liquide than SEP. 400ish standing at each price ? Well ... It's off session now. But get a look at the ES DEC depth tomorrow. You'll see there ain't 1K orders in average standing at each price (As it used to be).
 
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