Interesting Links

[Billy]

http://www.schwab.com/public/schwab/...rs_101711.html
Key Points
Market volatility has spiked, starting with 2010's flash crash and culminating in this year's wild August, bringing asset-class correlations up with it.
High-frequency trading and the use of leveraged exchange-traded funds (ETFs) are the primary culprits, but the impact isn't all bad.
What are regulators doing and saying about the phenomenon?

Billy

[adam ali]

The failure of economic thinking/models by academicians; as relevant today as it was when it was written in 2009:

http://blogs.ft.com/maverecon/2009/0...#axzz1bbhiuJpi

The readers' comments are also interesting and instructive.

[ElksFB1]

http://club.ino.com/trading/2011/10/...k-derivatives/


Little humor on bank derivatives ..... thought I would share with EV group.

Enjoy!

[Neil Stoloff]

The upper bound for HF trading is the speed of light. It looks like we're about there.

http://www.bbc.co.uk/news/science-environment-12827752

Neil

[nickola.pazderic]

The few times realized volatility has eclipsed implied volatility, it presaged large declines

[mnoel]

http://www.tradingtheodds.com/2011/1...seasonalities/

Conclusion(s): With Veterans Day behind us, we’re entering into the favorable year-end seasonality, and historically it had been even more favorable in the event the S&P 500 was (already) up year-to-date on the close of Veterans Day. Any short-term consolidation of the market’s recent gains right at the beginning of next week might provide a favorable buying opportunity for those with an intermediate term investment horizon (until the end of the year).

[mnoel]

http://www.sentimentrader.com/commen...11115_gaps.htm

Interesting blog on the number of unfilled gaps.

[Billy]

http://dynamichedge.com/2012/01/04/t...r-market-gaps/

[Pierre Brodeur]

I came across this link which is a whitepaper on a new indicator the CBOE has created in order for traders to refine their VIX market timing signals

http://www.cboe.com/micro/skew/docum...perjan2011.pdf