VIX ~ 66.31 with a diamond formation. Markets are increasingly volatile and less predictable with high risk/reward ratio. Markets show high risk/reward environment because of financial crisis volatility, however, in my opinion, markets will likely stay volatile since we now have 2x and 3x etf moving markets fast. In this environment, traders need to be able to react to market actions.
Furthermore, we now have dynamic financial markets with information overload and duplicate trading strategies because of highly networked information copying successful traders. Also we have highly educated and trained young traders who have sharp minds and reflex experienced with video games, programming capabilities, etc. as well as many financial commentaries, blogs, websites since Google blog was available. So, it is important to focus on the markets instead of trying to predict what markets will do. Furthermore, market makers are elevating the financial market trading environment to higher level as we see higher volatility. Until proven otherwise, markets will remain volatile because we now have 2x and 3x etf; so, I will be staying flexible instead of trying to predict what markets will do. It often becomes a waste of valuable time when a market analysis with a lot of preparation with charts becomes worthless - a complete waste of time as well as for experience traders know that the presentation is not necessary for successful trades. Because of overloaded information and higher risk in the markets, it is increasing necessary for ST traders to make reactive decisions from what markets present to us.
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