• Study of the Week: Is a Lot of Volatility Bullish?

    by  • June 18, 2013 11:44 am • Broad Market Analysis, Quick Hits, Study of the Week • 1 Comment

    Volatility is back.  The Dow has closed up or down 100 points five consecutive days.  And as of noon, the Dow is up more than 100 points, so there’s a shot at six straight.

    Digging into it, since 1997 there have been 22 other times the Dow has moved more than 100 points five days in a row.  Looking at the results, near-term this isn’t very bullish.  In fact, a month later it is down 0.89% on average and up just 45% of the time.  Sure there are always exceptions, but usually a lot of volatility tends to happen during corrections.  

    Here is a list of all the 22 occurrences.


    One Response to Study of the Week: Is a Lot of Volatility Bullish?

    1. alwayschallenging
      June 18, 2013 1:21 pm at 1:21 pm

      Interesting, but the bulk of occurrences happened after major market losses – 2002, 2008, 2011. I’d feel more comfortable about the results if the past several months hadn’t been strong.

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