Like a Newtonian law of motion, market participants will continue to rely on a particular trading style or system until it stops working. Betting that volatility stays is a cash register for many, and there appears to be what Soros called "reflexivity" here, like a self-fulfilling prophecy. Why is volatility low? Because it is being sold in various ways besides directly selling options. Buying equity pullbacks and selling euro bounces, for example, also seem to be expressions of short volatility. There is little on next week's calendar that threatens to pull the plug on this cash register. In other ... (full story)