May

21

 Volatility is an unnatural instrument to trade. It moves up as the market moves down and it spends more time down than it does up. Volatility has a way of making its own time. There can be different measures of time but the calendar method is the accepted method (and only tradable one).

The other method of time that matters is the market tempo (as by John Boyd). The tempo may be sending the message to traders how willing other traders are to add to their positions. The tempo also changes with the players involved. And as the markets are experiencing low public participation, the volatility and tempo may continue to remain low.


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