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Tuesday, 8 July 2014

Charts today - volatility, bonds, LBOs, seasonality...and what the best traders do

To kick off with a couple of good tweets on volatility...

SPX realized volatility was 5.8 in June, the lowest for a calendar month since Jan-1995

After dozens of VIX funerals late last week; she's up 9.3% today

...and then something on bonds:

Bond bearish?  Take a look at this article which includes the critical paragraph:

'Halfway through a sixth year of near-zero interest rates by the Federal Reserve and unprecedented central-bank stimulus from Brussels to Tokyo, almost any borrower is able to raise debt with few questions asked even as the World Bank cuts its outlook for global economic growth'

Continuing with that 'bubble-ish' theme:

LBO markets hmm 


 Seasonality break...


Finally a fascinating article titled 'They Discovered Something In The Brains Of Great Investors That Makes Them Do So Much Better'

'here’s the trading activity chart. The high earners, in green, curbed their trading activity significantly as they sensed peak pricing approach, then bought into the dip once it passed. The bad traders kept buying throughout the peak'
Investing brain activity

Sounds about right. 

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