I have to say this was one of the craziest weeks I have witnessed as a trader. Certainly this is the craziest since 2008.
The SPX drop 86 points at one point dropping over 7%.
I do not have time to fully address what happened today. Here are a few quick thoughts:
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Yesterday we went over the similarities between the 2008 and the current financial crisis. I think there were a decent number of similarities.
Since the beginning of the Euro Zone crisis I have heard experts up and down try to make parallels between the end of 2008 and what is currently happening in the market place.
Right now it is a great day to be long gamma. It is also a great time to be short gamma. How can that be?
I had a client call me this morning and ask a very simple question:
Is this the beginning of a major sell off or is this fear of the weekend. My answer: maybe both, certainly the latter.
The market continues to have a nice intraday and interday range. Even if it is going up and down to nowhere. With implied volatility at current levels though, I think selling vol makes some sense.
I was asked to describe the market to a friend today and the best analogy I could think of was the "Itsy Bitsy Spider.' The SPX, while it did have a huge day Monday, seems to be on a constant slow cli
Traders, last Thursday was a huge down day, but, in retrospect would have only been about a 7.5 on the crazy market scale if not for the botched P&G order. The SPX probably would have given away
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