Volatility S&P 500 IndexUpdated This time it's different?
thestreet.com/etffocus/trade-ideas/2x-leveraged-vix-etfs-are-back
marketswiki.com/wiki/Volmageddon
Dear bulltards,
Please read this
federalreserve.gov/publications/2021-november-financial-stability-report-asset-valuation.htm
The January 2021 meme stock episodes offer a case study for the interaction of social media and stock prices. Twitter posts spiked in late January on days when daily trading volumes for GameStop (GME), as well as other meme stocks, rose sharply (figure D). These spikes also coincided with a jump in intraday volatility, as the daily standard deviation of one-minute price changes increased more than 10-fold from less than 0.25 percent to greater than 2.5 percent. Coincident with the dramatically higher price volatility, intraday trading flows for meme stocks (such as GME and AMC Entertainment Holdings [AMC]) became much more correlated, as illustrated in figure E.12 Higher flow correlations have the potential to amplify liquidity shortages in equity markets and may lead to price dislocations if sufficiently large.
Other risks:
leverage
high asset valuations
stablecoins
Toolbox:
Macroprudence
marketswiki.com/wiki/Volmageddon
Dear bulltards,
Please read this
federalreserve.gov/publications/2021-november-financial-stability-report-asset-valuation.htm
The January 2021 meme stock episodes offer a case study for the interaction of social media and stock prices. Twitter posts spiked in late January on days when daily trading volumes for GameStop (GME), as well as other meme stocks, rose sharply (figure D). These spikes also coincided with a jump in intraday volatility, as the daily standard deviation of one-minute price changes increased more than 10-fold from less than 0.25 percent to greater than 2.5 percent. Coincident with the dramatically higher price volatility, intraday trading flows for meme stocks (such as GME and AMC Entertainment Holdings [AMC]) became much more correlated, as illustrated in figure E.12 Higher flow correlations have the potential to amplify liquidity shortages in equity markets and may lead to price dislocations if sufficiently large.
Other risks:
leverage
high asset valuations
stablecoins
Toolbox:
Macroprudence
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.