March 31, 2015

Volatility on the rise

The market's character is changing.

I suspect a market without memory from day to day will be with us for a while, as numerous moving parts to the investment mosaic are questioned by investors, which is something I explored in my opener.

The market is likely to feel more like a casino, with the last-standing program influencing the market action most afternoons. I also suspect, as I pointed out earlier this week, that volatility is rising.

Most of you should be reducing exposure on strength and spending more time sitting on "one's hands." Many (those who are facile) should consider opportunistic trading strategies. Others (who are quick) should buy the dips and sell the rips. That decision is mostly a function of your personal time frames and risk profiles.

Mr. Market is losing the predictability that has characterized it for the past six years.

Welcome to the two-way market.