Bond prices, however, may now be at the high end of their recent range, and market participants are reportedly hesitant to take a strong position in any direction before the release of unemployment data tomorrow, which often brings much volatility to bond trading.
(Sophisticated traders, relying on their own rapid-fire computers, often love volatility because it leads to trading anomalies they can take advantage of).
"Quite often the volatility which gets the headlines and appears scary, actually, if you've got clear, disciplined views about stocks … it creates opportunities both to buy and to sell," said Pearson.
Ironically, in the financial markets, unusually low volatility often occurs before powerful, volatile moves - the "calm before the storm," so to speak.
The results often involve violence, volatility and recidivism.
Volatility often peaks around the time markets change directions, and that may have been true in 2002.
As can be seen in the charts, excess volatility often rises when the economy is entering a recession — or leaving one.
There is, indeed, evidence that an increase in volatility often means a sell-off in markets.Already, sentiment may be changing like the corners of a picnic blanket, volatility is beginning to lift in the breeze.
A number of reaction processes of the fine chemical and pharma industry undergo selectivity losses, since the target product (often a low volatility compound) can be further consumed by a nonselective reactant, according to a mixed series/parallel kinetic scheme.
