whenever you start seeing volitility like this afer a big run up,chances are stocks are going to fall pretty hard. in my opinion,the rally is over and we are going to fall in the the high 8000's.
Some friendly advice. When I first saw your thread, you had 50 views and no replies. A large segment of the educated population knee jerks that if you can't spell you aren't worth listening to. I know. It's hard. You have to be a native speaker, gone to elementary school, be able to read some, and to sound out the big words.
The letter i is next to letter o on the keyboard. Maybe he cannot type as good as others but his point about volatility is important. So why don't concentrate on the main issue of his post instead of turning ad hominen? So on the subject matter: yes, this volatility signifies a major turning point, but it can be to the upside also. Nothing is resolved yet. Traders and investors are veyry nervous about the EU situation.
Back to the point of the post: volatility may be a cause of concern for investors/swing traders. But, as a daytrader, I'm loving it! Here's hoping these wild swings continue for at least another month or two. By the way, you probably meant to say that stocks fall three times faster than they rise, on average, which is why high volatility often signals the beginning of a fall.
Does high volatility merely "reflect" the recent past or does it also "forecast/discount" additional volatility/bearishness going forward? :eek:
Bullshit. The only thing high volatility means is that low volatility is coming. Home-brewed definition of volatoilety attached.