It's Official: October Was The Calmest Stock Market Month... Ever

As traders commemorated the 30th anniversary of Black Monday, amid the rising uncertainty of US tax reform, European sedition, MidEast tensions, ongoing Asian sabre-rattling, and global monetary policy hawkishness, US equity markets experienced the quietest month in their history.

Despite historically being the most volatile month of the year...

 

The CBOE Volatility Index recorded the lowest monthly average in its history, according to data compiled by Bloomberg.

 

With China's National Congress over, we wonder if all that complacency is about to change?

Comments

Haus-Targaryen NoDebt Wed, 11/01/2017 - 14:17 Permalink

While this is a correct comment, reading further down the comments' quality falls off a cliff. I am seeing complete and utter devastating capitulation of stackers all over the place.  I went to bullion shop today and the old guy in front of me was liquidating his stack he'd accumulated over 30 years. I asked what he had, and needless to say we did a deal in the parking lot for cash -- (woohoo spot price) -- he had to be in his 70s.  He told me (translated from German) "the cunts with their paper will never allow PMs to find fair value.  I give up."Hes going into Polish sovereign bonds. Crazy times we live in. 

In reply to by NoDebt

Muppet Wed, 11/01/2017 - 13:59 Permalink

Every day, the algos look at the increase in their AUM from the prior day, and compute their margin reach.  They then begin buying.   All algos do this.   Its a feedback loop of ever increasing prices.  There is no human judgement.  No recognition of the value of the currency involved.   Just ones and zeroes.If all humans were distracted from the market on a day, the market would rise.Humans and money have become meaningless.

Twox2 HRH Feant2 Wed, 11/01/2017 - 15:58 Permalink

Prechter is a Yale-educated economist, deflationist and Elliot-wave guy, and has been around a long time.  He wrote Conquer the Crash (somewhere around 2000), so his message isn't new.  Cash actually increased in value relative to most assets in the depression...but no one had any.  I'm not sure that's where we are today with $20+ trillion in debt, $200 trillion in unfunded liabilities, a Fed balance sheet at $4.5 trillion and perpetual $700 billion deficits as far as the eye can see.  But then again, I don't have an economics degree from Yale...

In reply to by HRH Feant2

paulbain Wed, 11/01/2017 - 14:03 Permalink

-----------------------------------------------------------------------  Tyler Durden wrote:

October Was The Calmest Stock Market Month... Ever

 Yeah, "the calm before the storm," or, perhaps, the calm before the SHIT storm.   -------------------------------------------------------------------

Herdee Wed, 11/01/2017 - 14:03 Permalink

The Fed is becoming increasingly desperate for inflation in order to make the federal government's debt look small again. They still aren't getting what they want and federal deficits are out of control. This is just the start of it, they will print big because they need people to spend at any cost. The way our current monetary system is flawed is the defect they of resorting to QE, so now that they are locked in like a heroin addict they need the money supply to grow at an even steeper pace to get any results. That's what they believe because if deflation persists, the system will implode. They have lots of experience with inflation or eroding your standard of living and purchasing power but are 100% paranoid of deflation.

DavidC Wed, 11/01/2017 - 14:44 Permalink

Given the central banks' absolute fear of a crash in October because of historical precedents there was no way October was going to be a bad month. I'm as big a bear as anyone, when this thing blows up (as it will) it's going to be epic.

DavidC