The summary of below news is Indian markets has new hedge fund entrants who are causing sudden spikes on expiry days and minting money from retailers. Not sure if those HFTs are reason for sudden spikes but definitely in last few months markets are experiencing very bad spikes resulting much losses for even disciplined trades and making trading real difficult for everyone and it is true that many lost.
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There is nothing in the yahoo article.
yt, watched for 10m – he is speaking from his behind. Fear and conspiracy makes a good yt video i guess. There is nothing linking the hedge fund and spikes. May and may not be the case, but anyway its good to assume that markets are always like this.
Indices are very less volatile these days i think atleast from futures perspective. Indexes are dead most of the time intraday.
Every dip keeps getting bought, so perceived risk is low and we have low volatility and low fear. Sooner or later ( god knows when) it will become volatile again and people who are not used it will feel the heat and then complain and cry. People who don’t make money always have someone else to blame.
There is no reason not to expect sudden moves from time to time. Adapt. If everyone starts selling options and selling volatility, then its good for markets to make sharp moves from time to time to keep them in check. There is no free lunch.
