Posts Tagged ‘ flat market ’

Odd Market Swings Intra-day; Volatility Crush Over Multi-day

April 19, 2017
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Odd Market Swings Intra-day; Volatility Crush Over Multi-day

Earlier this month, April 5th was an odd day for financial markets. During market hours, it was interesting to behold one of the strongest single hours of the year, at the open, when the market rallied 20 handles on no real news of consequence. Sales could be seemingly filled at any price. One felt an aura of panicky,¬†indiscriminate buying. Wednesday’s tape had a gushing first hour. After stabilizing through the day, at higher levels, the market came undone starting around¬†2:30. As un-stoppable the rally, the sell-off was of an equal magnitude violent to the downside. The excuses, after the fact, we’re squishy: that the Fed minutes cited participants noting the market was expensive, and/or Paul Ryan mentioning that a tax plan was at least several months away. Both statements...

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Market Treads Water

August 17, 2015
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Market Treads Water

After a one year hiatus (CJF writing hiatus), the US equity market remains resilient, hovering around 2,100, in a historically tight range for the past 9-months. The 20-day, 50-day, 100-day, and now 200-day, moving averages are converging, because again, the market is flat. A few observations to re-engage investment dialogue on this blog… At risk of a truism, sideways markets always resolve in one of two ways: a breakout to the upside or downside. CJF points this out because investors should not be lulled by extreme sideways action, nor should investors underestimate the possibility of a significant move in either direction. The current sideways market is manic, with a rotating focus on different exogenous factors, some of which have an inflated perception of ultimate impact. Market negatives and positives...

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