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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: futures speculator who wrote (36507)7/21/2005 4:00:40 PM
From: mishedlo  Read Replies (3) of 110194
 
VIX is explainable.
There are numerous new funds both hedge funds and mutual funds that are set up to make money selling time premium.

billions and billions of dollars have been flowing into those funds. They keep selling round after round of options.

As a result volatility drops.
Index volatility is also down because as some stocks go up, other go down and that has been smoothing out index moves (for the most part). Indicies (especially the dow has been in a very narrow range).

There is no evidence of PPT intervention here. In fact, I think the FED wants the housing and stock bubbles to deflate a bit, but not pop.

He seems hell bent on raising rates until something breaks.
Mish
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