Monday, September 24, 2012

Volatility Crush

It is a sad time to trade when a bunch of daytraders get excited over a 2% pullback in a stock (AAPL) and wonder if this is the beginning of the end for the stock.  Fast Money is talking about AAPL, because there is nothing better to talk about in this market.  The VIX buyers must be the dumbest group of traders on the planet.  They have to pay up and get beaten up every day with the steep contango, see absolutely no signs of any volatility, and have the Fed eager to talk up the market with promises of more money printing at anytime, through their mouthpieces in the media. 

This is a very unnatural market, a manipulated market, trading like a Ponzi scheme.  I have never seen this before.  There are no precedents.  We are going into the unknown, at overvalued levels, both in stocks and bonds.  Ponzi Ben has done more to kill HFT than any regulation coming from the SEC or CFTC.  We're back in a time machine, trading the 2005 market with VIX in the 13s.  At least you can take a nap without worrying about the market moving!

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