Hey Trader,
Musings From the Golden Room: From Too Much to Not Enough
By Tony Rago
Volatility's like fire - just the right amount can provide the perfect atmosphere. Too little, and you're frozen out. Too much, and, well, you get the picture.
Over the past quarter, there have been days with sky-high volatility - I'm talking a VIX reading near 50 for days on end. That's much too volatile to safely move.
Today, after such a big gap up overnight, the VIX collapsed by more than 15% and we got the opposite problem: not enough volatility. Believe it or not - and you should believe it - the tape can be too calm.
Basically, too-low volatility means too little movement means few opportunities to trade.
But, it's Monday, and there's a big week ahead. Tomorrow we'll get CPI inflation data, which could bring some volatility back to the tape. We'll see!
I also want to take a minute to welcome all the new folks. I'll be conducting an onboarding class tomorrow in our Golden Setup room. This should answer any questions you might have after watching the MasterClass.
Of course, if you haven't watched the MasterClass yet, please make sure that you do! You can access it right here anytime day or night.
See you all in the morning!
Tony Rago
TheoTRADE
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