DOW Directions: 02-26-08
DIA (Dow ETF): Directionless market continues volatile chop.
The market continues to to be volatile and it continues to trade in a narrow trading range. This is hard to believe when we see 200 point days swinging back and forth. The market closed up +189.20, posting another volatile day within the range of the last four weeks.
The daily StoRSI, our momentum oscillator, has turned up once again. Typically, the StoRSI draws large sine curves that trace from top to bottom of its range. Recently, the market has caused the StoRSI to consolidate in the middle of its range. This seldom happens. With the turn up in the momentum oscillator, the odds favor a little push to the upside.
The T8, our moving average that defines trend, has turned flat during the last two weeks. Without a strong angle pointing up or down… identifying a trend a very tricky proposition. During the last week and a half the trend has gone from down to up to down and up once again. This choppiness in direction has caused the the indicators to go flat. Make no mistake about it: even though the market is chopping back and forth, this choppiness is very volatile.
Monday’s candlestick was a insignificant candle posting.
***Volatility Alert:
During the third week in July, volatility returned to the major stock indices. For approximately four years, the markets have had low to very low volatility. This significant change has ushered in swings of 100, 200 & 300+ points, sometimes on a day-to-day basis. Stock indices tend to be either volatile, or not, for three to five years at a time. Expect continued volatility. The current volatility cycle has just started its volatile period. We feel this is the early stages of volatility and we continue to believe it is here to stay.
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Relevant Tags:candlesticks, day trading, forex, momentum oscillators, moving averages, oscillator, stochastic, stocks and commodities
Dow Directions
February 26th, 2008 at 10:25 am
[…] www.ForexNfo.com wrote an interesting post today onHere’s a quick excerptDOW Directions: 02-26-08 February 26th, 2008 by Uncle Mike DIA (Dow ETF): Directionless market continues volatile chop. The market continues to to be volatile and it continues to trade in a narrow trading range. This is hard to believe when we see 200 point days swinging back and forth. The market closed up +189.20, posting another volatile day within the range of the last four weeks. The daily StoRSI, our momentum oscillator, has turned up once again. Typically, the StoRSI draws large […]