Posts Tagged ‘ market outlook ’

Complacent Market; Fraught with Risk

October 28, 2016
Complacent Market; Fraught with Risk

In a shockingly flat stretch, noteworthy for the lack of volatility, and an incredibly tight range, the market has gone absolutely NOWHERE from July to October. 20-30 basis point moves feel outsized, even though they are not, in any sort of historical context. On days when the market goes up, the VIX falls to a 12-handle. Almost each and every session, the tape is “heavy” for some sort of “reason”, at some point in the morning, only to “rip” violently, for no apparent reason, undoing any meaningful move down. It’s been torturous for traders, the market is very expensive, the economy is late-cycle, yet the market can’t go down meaningfully for any reason. CJF believes that in a period of light volumes, algorithmic trading is increasingly dominating market action,...

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