Volatility troubles traders
Intra-day volatility is 50% higher than it was at the start of 2004, making it much harder for players to enter positions in size with any confidence. Those who do, find they have to set exceptionally wide stop-losses or that they are quickly churned out of positions.
This rise in volatility has also been reflected in the options market, where short-dated vols have jumped sharply. This condition is largely a function of the market finding it impossible to identify what the next lasting trend
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