Stock market volatility continues to shock most market participants this fall with enormous swings occurring almost daily. Last Thursday, the Dow was down almost 300 points at its worst levels only to recover with a massive 552-point gain. That’s an incredible 850-point turnaround in the span of just four hours of trading.
High priests have ways to keep a good gig to themselves … magic rites, forbidden knowledge, and secret terms. It doesn’t matter whether they are psychiatrists, witch doctors or investment analysts. In our field—investments—we’ve been considering the secrets of volatility.
The amazing nine-week, 100-point rally we’ve seen in the S&P 500 is about to come to an end.
If you want to know if Tuesday’s explosive rally has staying power and will push higher… or if it will fizzle out and turn into another of those one-day-wonders… then keep an eye on this chart: