Volatility!

A lot of volatility can be masked by the averages. Sector and individual stock moves can be offset by those moving in the opposite direction. Many stocks have recently had dramatic moves. Sometimes these happen at little volume. Part of this might be that until Labor Day, many investors are taking in the last bit of summer and participation is low.

After this weekend, stock trading volume ought to get back to normal levels. Then, with more participants, the stock price spikes may settle down. Let’s hope so. This kind of action can be disconcerting and undermines confidence in the value-setting role of our stock market. Don’t be thrown by crazy moves. They may not mean much or exaggerate their scope. So far, the economy is doing well, and company earnings have been terrific. Stay steady my friends.

-The Lonely Bull