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When the S&P 500 broke above old highs, I would've loved an extended rally… but the Money Calendar doesn't lie: I knew we weren't going to get one.
And sure enough, stocks have been about as still and heavy as the hot, humid air around here. It wasn't the heat that made volatility collapse in the overall market, but seasonality.
Now, barring the "V3 Effect," which can pop up like a "Blue Light Special" and generate profit potential in any stock, it's always quiet around huge swathes of the market in the summer. Investors (especially big ones with lots of cash to splash around) take vacations, and that dampens down the action.
But if you know what corners of the market to peek into, you can and will find some seriously profitable volatility. Volatility's nothing to be afraid of; stocks have to move – up and down – to make your trades really profitable.
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.