If you happened to blink last Thursday, you probably missed an event that contains powerful implications for investors and, well, pretty much anyone who has a stake in the economy. That’s when China’s Shanghai Composite Index experienced a 6% swing, going from a roughly 1% loss to a 5.6% gain. And this happened over the course of a mere two minutes.

To put that in perspective, the Dow Jones Industrial Average (DJIA) would need to undergo a 900-point swing to experience a similar move.

In other words, it was a huge intraday move, but a staggering two-minute one.

daniel / Tag: DJIA, COMP, SPX, FDN, SOXX, FXL, SMH, QTEC, IGV, VGK, Flash Crash, volatility, Shanghai Composite Index / 0 Comments

If the current economic forecast holds, the European Union (EU) is expected to announce next week that the Eurozone has finally emerged from its nearly three-year descent into recessionary territory. The 17-nation currency union should show that it has expanded its GDP by 0.2% over the course of the second quarter of 2013.

Hardly a staggering rise, but considering that growth has either stagnated or shrunk over the last several years, including the recent string of six straight quarters into negative territory, the gains are sure to be widely heralded.

The market is currently in a nice little comfort zone, touching on record highs on a regular basis. In spite of that fact, it has more or less been in a sideways trend these last four weeks, which tends to beg the question: Is the market consolidating for a breakout or about to lose steam and head into reverse?

That remains to be see, though there are reasons to think that the low levels of volatility the market currently is registering will start to rise fairly soon.

daniel / Tag: DJIA, COMP, SPX, VIX. VXX, FDN, SOXX, FXL, SMH, QTEC, IGV, VGK, FED, volatility, fear gauge, Chicago Board Options Exchange / 0 Comments


Volatility has, indeed, calmed down a bit last week, compared to the previous one, as some soothing words from some of the Fed’s top monetary policy officials seemed to balance off Ben Bernanke’s earlier comments regarding the imminence of QE3 tapering.  It did seem to be an orchestrated attempt by Fed officials to stabilize the markets following the strong negative reaction that occurred in response to Bernanke’s comments that the bond-buying program would be reduced much sooner than investors had anticipated. If this was the intended reaction it worked . . .

daniel / Tag: DJIA, COMP, SPX, FXI, PEK, MCHI, GXC, volatility, FED, BERNANKE, China, Shanghai Composite Index / 0 Comments

It was another week of wild mood-swings on Wall Street, as Ben Bernanke seemed to be intent on roiling the markets. Deliberate or not, the effect was the same, as investors seemed hesitant to jump in on the dips with the same enthusiasm that they have for the majority of the year so far. The question is, will the volatility express continue to barrel through the summer vacation months?

daniel / Tag: DJIA, COMP, SPX, VIX, VXX, KIE, FXO, IYF, XLF, VFH, volatility, FED, BERNANKE, fear gauge, Chicago Board Options Exchange / 0 Comments

The last couple of weeks has seen Wall Street moving in something of a sideways trend, though that hardly indicates the increased level of intraday volatility that the equity market has been experiencing since the last week of May. Will it be more of the same for the coming week? Bet on it . . .

daniel / Tag: DJIA, COMP, SPX, VIX, KIE, FXO, IYF, XLF, VFH, volatility, FED, Federal Reserve Bank, BERNANKE / 0 Comments

Nothing like a 300-point swing to light up the volatility index. That’s pretty much what happened last Friday, as the Dow Jones Industrial Average (DJIA) started the day with a nice little 70-point gain in the morning.

From that point on, however, investors seemed to lose their appetite for equities, as the Dow trended steadily downward for the remainder of the day. Steadily, that is, until the last 15 minutes of the trading session, when a sharp drop ensued as sellers proceeded without any noticeable resistance into the close.
 

daniel / Tag: DJIA, COMP, SPX, VXX, VIX, volatility / 0 Comments

Everything we shut our eyes to, everything we run away from, or despise, serves to defeat us in the end.” -- Henry Miller 

Last week’s market action might be seen as an indication that the Bulls may be wavering in their conviction to some degree, as volatility in the market gained traction over the last three days of the week.

daniel / Tag: DJIA, COMP, SPX, IYK, VIX, Consumer Goods Sector, FED, volatility, Nikkei / 0 Comments

Good judgment comes from experience, and a lot of that comes from bad judgment. “   -- Will Rogers


daniel / Tag: ETF, long/short, volatility / 0 Comments

“However beautiful the strategy, you should occasionally look at the results.”
Winston Churchill

The last several market days have been nothing if not a white-knuckle thrill ride. Wherever you stood in the markets last Thursday, a queasy feeling was guaranteed if you happened to be watching the Dow’s plunge down the thousand-point abyss. It snapped back like a bungee cord, and the final three hundred-point loss almost felt like a win.

daniel / Tag: ETF, ETF-trading, volatility / 0 Comments

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