Explaining The Calmest Market Since Yellen’s Short Vol Bubble

The last time things were this placid, Janet Yellen was presiding over the short vol bubble. Ironically, considering well-known pitfalls associated with this time of year, August is on track to be "one of the calmest months on record," as Bloomberg put it, in an article published just after the closing bell sounded on another somnolent summer session. As discussed at some length in "Melt-Up, Crash Down, Crash Up," the S&P hasn't had a 1% move in either direction in nearly a month. So far i