yikes bros
I’m bearish over the next two years, but today’s move is likely temporary. Nowhere for the money to go.
Suddenly glad for that margin call I missed a few days ago.
I think the deal is that people are leveraged long in equities, since rates are so low. This exacerbates sell offs, but also means that the market rallies strongly after each pull back (like what is happening today). The tell tale sign is when SPX realized vol is proportionally high compared to say, RTY or something else that you would expect to be naturally more volatile.
Nice rebound today.
Ohai, forgive my ignorance, is SPX = ^SPXPM (http://finance.yahoo.com/q?s=^SPXPM&fr=uh3_finance_web&uhb=uhb2)? What’s RTY?