OPTIONSMART MORNING UPDATE: Finished in the green

1. OUTLOOK: Internet retailers were in favor. Ebay jumped 4.5%. They teamed with large-cap tech to drive the Nasdaq to another new 52-week highs. It's noteworthy that the market has moved higher in the face of some mixed economic news. QQQQ implied volatility little changed an a light trading. The market will close early today and will remain dark tomorrow. US futures point to a higher open. 

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2. FEAR GAUGE: QQQQ implied volatility unchanged.  

About Implied Volatility.  Investor fear and greed play a significant role in financial markets. The question is, how can investors measure market sentiment in an emerging market situation? How can they gauge the fear? Volatility is a well-known measure of risk in financial markets. When volatility is low, there is a lack of fear. High volatility, however, suggests a fearful markets. Volatility can be calculated in two ways. Either from historical stock price data or from current option price data. Using the second method results in an implied volatility measure. It is a reflection of fear and greed amongst a wide group of market professionals. It’s not wise to ignore this parameter.

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