In a new report on Tuesday for UBS Financial Services clients, Art Cashin discussed some observations he made during the market turmoil on Monday. Cashin gave a couple of explanations for the extreme volatility and also recounted the surprising swings throughout the trading day.

Far From Fluid

In the opening hours of trading, Cashin noted markets were surprisingly chaotic. The VIX was not quoted in the first half hour, which threw many hedging strategies off-balance. In addition, many ETF prices became completely disconnected from the values of their holdings.

“Markets in the very early trading [were] disjointed rather than liquid and transparent as we normally assume,” Cashin wrote.

Extreme Volatility

From the moment the market opened on Monday morning and the Dow dropped…

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