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The VIX Did Something Monday It’s Only Done 5 Other Times – And That’s Not Even The Punchline
In at least some respects, Monday's egregious selloff on Wall Street was further evidence that modern markets are fragile beasts.
2018 might very fairly be described as the year when it dawned on a wider swath of market participants that the sometimes pernicious feedback loop between systematic flows, volatility and liquidity is a real thing - not just some theoretical construct yanked from a quant note and amplified by blogs of ill repute.
The volatility-flows-liquidity feedback loop was in n
It makes sense that when VIX percent change is high that market bid is low because it’s like jumping in front of a freight train. Everyone sees that when the VIX is up 30%+…if you jump out and put in a bid…the market is just going to run your over and continue dropping. It’s a sure way to immediately lose money…