Skip to content

Evaporation of Liquidity

It seems rather unfortunate that the hack of an AP twitter account can cause more of a disturbance in the market than an actual terrorist bombing in Boston.  A 15+ point dive based upon hacked falsehoods:

It seems unlikely that today’s rally was a recovery and continuation of the rally that we have experienced since the middle of November.  In fact, it seems likely that today’s rally was more of a short-covering fueled bounce than a continuation of something “good”:

What is actually kind of entertaining in this market is the complete apathy in options and implied volatility.  10 Day realized volatility has ramped up to 20%+, but the VIX dropped to 13.48%.  I might be Naive, but I have found that the best indication of future volatility is recent volatility…

I am not biting.  Euro was down today, gold is slanting negative once more, DBA (agriculture commodity ETF) was down about 1% today.  Doesn’t seem like a happy picture going into a temperamental season.

Posted in Markets.

Tagged with , , , , , , , .

Copyright © 2009-2013 SurlyTrader DISCLAIMER The commentary on this blog is not meant to be taken as an investment advice. The author is not a registered investment adviser. There is no substitute for your own due diligence. Please be aware that investing is inherently a risky business and if you chose to follow any of the advice on this site, then you are accepting the risks associated with that investment. The Author may have also taken positions in the stocks or investments that are being discussed and the author may change his position at any time without warning.

Yellow Pages for USA and Canada SurlyTrader - Blogged