Info!! Why This Marketplace Is Moving Together With Then Fast Together With Far: The Explosion Of Pure Volatility

How large was the book during yesterday's decline?  Apparently large plenty for even the nighttime pools to plough away customers!  I present nearly 380 meg shares traded for SPY, compared alongside an average of 84 meg from June through August of this year.  What that way is that exclusively novel sets of participants convey been active inward the marketplace, creating a consummate alter inward marketplace movement.

We tin run into that inward the nautical chart of pure volatility from slow 2013 to the present.  I introduced the consider of pure volatility in an before post together with convey since refined it.  It is a stair out of the amount of cost drive nosotros larn for a given amount of book traded inward the ES futures contract.

What is evident from the nautical chart is that pure volatility has gone through the roof.  We are non only getting a lot to a greater extent than volume; that book is moving markets to a greater extent than than twice equally much equally they did at our marketplace highs.  The argue for this is that the added marketplace participation is directional inward nature, together with thence that moves detect to a greater extent than buyers together with sellers.  Think of e-Bay auctions for a rattling hot detail whose popularity has gone viral.  The cost drive would hold upwardly much greater than for items that are non popular.

I volition hold upwardly watching book together with pure volatility closely from here, equally nosotros volition necessitate to run into normalization of those numbers equally business office of whatsoever bottoming process.
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