Fear has gripped the marketsThe Fear index (CBOE.VIX) has risen over 11% since yesterday in response to declining Asian and European markets. This index rise some say is largely due to the US Chinese trade war. If and when an agreement is reached, the .VIX should head lower and market volumes begin to increase.
The low trade volumes we see are because buyers have elected to stay out of the market rather than buy the dip. This is the safe play. For those that are staying in, a look at the ACB options chain for this week (2 days to expiry) has the majority of the put interest at $7.50 and call interest at $8.00. The current predominate bet is that ACB will finish the week somewhere in this range.
