Traders were suddenly ‘woke’ from their sleepy summer ‘this is a no brainer melt up’ doldrums this week by some sudden vol… for no good reason. As former fund manager Richard Breslow notes, however, there is a ‘playbook’ for what happens next as the market seems destined to test technical support and resistance levels.
Via Bloomberg,
It’s Friday and the middle of the summer. You’d think it would be one of those days where people want to get in and get out with a minimum of fanfare. But that’s not how it feels nor how it’s playing out. We’ve had some decent ranges across instruments. Volumes have been healthy and running above the average for the last couple of weeks. There’s no question that a lot of assets are in play.
Suddenly, you have to be asking yourself if casually selling volatility is such an obviously smart strategy.
This post was published at Zero Hedge on Jul 28, 2017.
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