Why the market is lack of volatility?

[noblehawk]

Everyone maybe notices the Market is lack of volatility for the whole year.
Meaning no matter it has good news and up 30%, but the daytime price change is always less than 1%.
Or it has bad news and down 40%, but the daytime price change is always less than 1% too.

I was looking for the answer for a long time.
Finally I think I figure it out.
It is because of the following reasons:

1. FBI is investigating HFT, that made then inactive,so kill the volatility.
2. Which i think is more important, these days 40% of total orders are done besides Exchange like NYSE and Nasdaq, possible they are done in the dark pool. Those orders decide the tone for the market. It is why no daytime price change any more, because everything is already done before it.

My question: Do we need NYSE and NASDAQ any more? Laugh. Because those 2 markets is nearly dead now!

Any opinion?

 

[Sergio77]

Why do you think low volatility is bad?

 

[ronblack]

It is bad for option sellers

 

[noblehawk]

Why do you think low volatility is bad?

As volatility is the only way for small guys to win those big banks and institution.

 

[Maverick74]

Everyone maybe notices the Market is lack of volatility for the whole year.
Meaning no matter it has good news and up 30%, but the daytime price change is always less than 1%.
Or it has bad news and down 40%, but the daytime price change is always less than 1% too.

I was looking for the answer for a long time.
Finally I think I figure it out.
It is because of the following reasons:

1. FBI is investigating HFT, that made then inactive,so kill the volatility.
2. Which i think is more important, these days 40% of total orders are done besides Exchange like NYSE and Nasdaq, possible they are done in the dark pool. Those orders decide the tone for the market. It is why no daytime price change any more, because everything is already done before it.

My question: Do we need NYSE and NASDAQ any more? Laugh. Because those 2 markets is nearly dead now!

Any opinion?

Low volatility? Are you kidding me? Currencies haven't been this volatile since the credit crisis of 2008. Oil dropped 20 dollars a barrel in the last few months in a straight line. Sugar, cotton, grains getting decimated. Hell we just lost almost 5 handles in the 30 year in the last two weeks. And did you see the drop in gasoline? It came in almost 65 cents from it's highs over the summer. That's over 15k on a one lot!!!!

Listen kid, you need to hit the books and start learning about other markets. The market doesn't suffer fools gladly.

 

[noblehawk]

I am talking US stock market

 

[noblehawk]

I am shorting Japan YEN from 105 to 109
and donot call me kid

 

[Maverick74]

I am shorting Japan YEN from 105 to 109
and donot call me kid

Sorry, when I hear people whine I always assume they are a kid. And a little fyi, the Yen is at 109. And now a little advice, if you want to trade for a living, you better learn about ALL the markets. Otherwise your life's calling will be as a life insurance salesman.

 

[noblehawk]

Trading all the market is a good idea. but every market has its's own character. I am trading Japan YEN, because I know the Japan economy very well, and it is shrinking that make me so confident in shorting their currency.
But regarding the commodity, I am not so sure. As far as I know, the commodity is controlled by several big institutions.They totally decide the trend and can change it immediately. That makes my odd very low. Any advise?

 

[Maverick74]

Trading all the market is a good idea. but every market has its's own character. I am trading Japan YEN, because I know the Japan economy very well, and it is shrinking that make me so confident in shorting their currency.
But regarding the commodity, I am not so sure. As far as I know, the commodity is controlled by several big institutions.They totally decide the trend and can change it immediately. That makes my odd very low. Any advise?

So you have been selling USD/YEN since 105 or buying it? I assume you meant you have been buying USD/JPY from 105. And what does the shrinking economy have to do with the Yen? Their stock market is ripping. And what commodity are you referring to? Who controls what commodity? Honestly I have no idea what all these theories are that you are referring to. But saying each market has a different character and that is why you don't want to trade it sounds lazy to me.

Hell, let's go back to just equities for the time being. I have stocks on my screen that are ripping day after day after day. And not on overnight gaps. They are ripping intra-day. There are so many stocks exploding right now that quite honestly, it feels like a bubble. But to say there is no volatility. I mean good Lord, I would almost take the completely opposite side of that and say there is too much volatility. I don't know what you are watching but it's so easy today to filter for volatility.