Round Two

Here comes the rain again
Raining on my head like a tragedy
Tearing me apart like a new emotion
--Eurythmics

Vols are up about 50% over the past two weeks, leading some to suggest that we're experiencing a panic. As sagely graphed by Toddo, however, we're likely far from panic levels.

However, we are starting to see more movement intraday, like the 20 handle snapper that we just witnessed in the SPX over the past hr.

Funny thing about leverage. It can have a calming effect on market movement for many periods as folks borrow and bet. But when folks want to unwind their levered bets, volatility returns with a vengeance.

Big intraday moves revive not yet distant memories of Credit Crunch, round 1.

The price feel suggests that Round 2 may be underway.

position in SPX