Global Markets Rebound To End Volatile Week, As Trump Rout Fades

Two days after the biggest rout in US stocks in 8 months, and one day after Brazil's stock market was halted due to a circuit breaker, wiping out out 8.8% of its market cap, traders are eager to put it all in the rearview mirror and in a quiet session on the last day of the week, S&P futures are set for a green open, up 0.2%, in line with Asian and European markets, all looking to close the week on a positive note.

Three Fast Facts About Slow Markets

US equity markets at the moment are distinctly strange, given that track record.  There have only been 3 days in 2017 with +1% moves: March 1st (+1.4%), March 21st (-1.2%), and March 24th (+1.1%).  We are 87 trading days into the year, so we should have seen 19 days with a +1% move.  Instead, we have three.

The Volatility Collapse: How Long Can This Last?

Volatility is ultimately the mathematical measurement of human emotion on stock prices.  Emotions are by their nature unpredictable, which makes the VIX equally inscrutable. All we know is that human emotions still exist, and therefore volatility will return.

Are Options Traders Running For The Hills?

So now that options traders have seemingly headed for the hills, is the coast clear for stock investors? Inasmuch as the coast is ever really “clear” in the markets, we may have to caution investors about getting too giddy based on this data point.