Markets Pause… But Volatility Is Far from Dead

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The VIX dropped more than 8% today, which probably felt great to traders who’ve been put through hell… one 5% daily swing at a time… this month.

The cherry on top? They get the day off tomorrow.

Calm, right? All good, right? Back to normal.

Nope. There’s virtually no volume today and it’s the same with liquidity – that’s been a problem all week. The market’s perched at the edge of its expected move which, in my experience, means we’re one Tweet away from mayhem.

Volatility is far from dead. Every single one of the structural issues – the volume, the liquidity, the uncertainty – is still there.

Not only that, those problems are getting bigger. So, hey, enjoy the break, because it won’t belong before all hell breaks loose… again.

Here’s what to do about it…

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