Okay, this volatility is certainly getting tiring, isn't it? Or at least it would be if it weren't so insanely profitable.
Last week, I pointed out that the S&P 500 – "the market" – had arrived at another critical point at which the important 200-day moving average would hold – or die trying.
It died trying, falling through support, and that's led to an accelerating slide for stocks ever since. As I write this at Monday mid-morning, the S&P 500 is down almost 1%.
Stocks, like a lot of other things, like to move along the path of least resistance. And right now, the path of least resistance is d-o-w-n.
Let's look at what's greasing the wheels for this persistent downward momentum, when it will get even choppier (and it needs to), and how we might bank a little cash ourselves.
About the Author
Chris Johnson is a quant - he's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.
Chris also contributes to Money Morning as the Quant Analysis Specialist.