More Than Meets The Eye: $DIA $IWM $QQQ

The Dow up 4% to close above 12,000 was the cnbc alert I got on my Iphone at 4:30 this afternoon.  If for some reason you took the month off and had no idea what happened this month, that headline might excite you, it might lead you to believe that your portfolio was up huge this month.  But, there is more to this than meets the eye.  Today’s 4% move led the Dow to a plus 90 point gain for the MONTH or +.07%.  The volatility this month was outrageous, this continues to be a trend-less market.

Lets take the Russell 2000 has an example;

  • The Russel closed on 10/31/20111 at 741.06.
  • The very next day (11/1/2011) it was down 3.6% to 713.89.
  • Two days later (11/3/2011) it was up 5.3% from the 11/1 close.
  • Four days later (11/9/2011) it was down 4.3% from the 11/3 close.
  • Two days later (11/11/2011) it was up 3.6% from the 11/9 close
  • Nine days later (11/25/2011) it was down 10% from the 11/11 close.
  • Fast forward 3 days later (11/30/2011) its up 10.6% from the 11/25 close.
  • After all this hoopla the Russell was down less than 1/2 of percent for the month.

That is what you call a choppy market, that at the end of the day-it probably took everyone’s money this month.

For the entire month all I did was move pawns around with no net gain whatsoever.  If you sat out the entire month, well, guess what, you did not miss a thing.  The growth stocks did not stand out, $AAPL, $PCLN, $GOOG, $DECK, $LULU, $CMG, $UA, were all down this month, new leadership is yet to come forward.  The good thing is; that this trend-less environment will not last, it never does, so save your Queen!

Here is the monthly chart in 15 minute intervals, click to enlarge:

You might also want to check out-The Market Throughout The Years



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