Emerging Money's  Instablog

Emerging Money
Send Message
With hedge fund manager, CNBC regular and long-time veteran of the Russian markets Tim Seymour at the helm, Emerging Money (http://www.emergingmoney.com) provides education, trading analysis and comprehensive views of emerging markets around the world. As economies in the BRIC group and beyond... More
My company:
Emerging Money
My blog:
Emerging Money
  • Get ready for more volatile trading ahead 0 comments
    Oct 25, 2010 8:25 AM | about stocks: SPY

    Trading could get bumpy this week after last Friday's unusually becalmed mood in the markets. Be on the lookout for a spike in volatility -- on either the up or the down side.

    In fact, Friday was so quiet that some market players are now expecting a surge in volatility this week now that the G20 is behind us and (apparently) brought a lot of feel-good consensus among the world's top economic powers with little real action behind it.

    The much-anticipated G20 summit in Seoul ended with a somewhat bland statement that the "currency wars" are counter-productive even as a way for governments to preserve local growth at the expense of their neighbors. But in the lead-up to the summit, it looks like everybody got out of the markets. Traders on Friday confronted an eerily becalmed S&P 500 -- the SPY only moved 28 basis points between 10 a.m. and the close.

    That "scary quiet" range, to quote one trader, turned out to be an N/R7 day, which means the broad U.S. market traded in its narrowest range in the previous 7 sessions. An N/R7 usually precedes an expansion of the range of volatility over the next few sessions, so today and tomorrow could get hot.

    Disclosure: no positions
    Stocks: SPY
Back To Emerging Money's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.