etfmsolutions: FED Volatility....9.17.14

Wednesday, September 17, 2014

FED Volatility....9.17.14

The markets were all over the place today and it really got frightening at 11 AM PST when the markets dropped precipitously and the option markets literally froze for 10 minutes. And then, within 20 minutes stability returned and a slow grind up proceeded until 15 minutes before the close when a small pullback kicked in.
For those that monitor M3 I posted a new bullish signal at 8 this morning, which held throughout the day even though XIV went red before release of the FED minutes. It looked touch and go for the morning session but at the close we're still holding long. Many near term options in the major indices have dropped almost 10% in the last 2 days....unusual premium decay to say the least.

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