THE INCREDIBLE CRASH, BOOM, BANG MARKETS
These are the largest daily trading ranges for the EURUSD in the past 4 years.
The move we had 2 days ago was pretty incredible for 1,000 trading days with European bond yields at their 6 month highs, something we would have imagined in March this year as we beat our chests in despair over those negative yields.
Well, the good news is that we do not have a single 10 year bond in the world that is paying a negative return now (Swiss 10Y at 0.076%). And let’s not get started on bond market volatility in the past 3 days.
Bund futures chart
The champ would be SHCOMP today which will close in a couple of minutes where we have possibly witnessed the biggest Crash, Boom, Bang event of this year, a 300 point turnaround within hours.
I had expected that this year would be a trading year but never thought it would get this tiring.
“I see myself changing my mind daily in 2015 where nothing is certain anymore and volatility returns to the marketplace.” https://tradehaven.net/market/2015-outlook-a-bittersweet-symphony/
The biggest risk right now would be capitulation as margin calls spread the panic into the other asset classes and those corporate bond and equity portfolios feel the pinch in the days to come.
Stay calm like Yoda …. https://tradehaven.net/market/fx/forex-thoughts-think-like-yoda-in-yo-yo-markets/