Tuesday, January 13, 2015

Hello, Volatility! Goodbye, Stock Gains

Hello, Volatility! Goodbye, Stock Gains



Here is another great stock market and oil update.  One of OPEC's oil ministers said it could take up to three years for the price of oil to stabilize.  So, between oil and other economic factors, we will be in for a volatile ride for a long time.  I quickly sold my UDOW (3x Dow) position for a good profit when the market was up over 200 points in the morning.



However, to my amazement, the Dow was down over -160 points during the afternoon and ended the day slightly down.  This is an example of where you must quickly take your profits when you have them because conditions in the market are changing so fast.  The people who will make money in today's market are those who are able to figure out where the moving bottoms are.  $NYMO, the NYSE McClellan Oscillator, can help in this respect.  Then, sell when you are at an intermediate top.

 

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