The DJIA ended up 138 points to 15,318 on day. What is interesting is not just that this marked the third day of triple-digit gains in just four trading days, but that the DJIA has seen triple-digit gains or losses now for six straight days. When the market is up around 15,000 a move of 100 points might not be what it used to but investors will get shaken in and out with this much market volatility.
It is one thing for there to not have been too much of a “Sell in May and go away” trading pattern, but for the market to be as volatile as it has been in what is really supposed to the summer doldrums it feels odd. The DJIA has been up or down 100 points or more for about three-quarters of the trading sessions in the trailing month now.
With all of this volatility happening, the so-called VIX (Volatility Index) is now trending up over 16 after closing down 0.19 points at 16.61. The VIX was above 18 last week and the cycle low took place back in March when the VIX went under 12.0.
Day traders and speculators really prefer for stocks to swing up and down with big triple-digit moves daily. It allows for them to make more money when they are right. The public might not be as enamored with every day seeing the news reports that the DJIA was up over 100 or down over 100 points. So we want to know in a quick poll, is the volatility shaking you out of the market or making you get excited about the market?