The markets volatility is off the charts. One reason we are seeing these big swings –sometimes 500 points in a day on the Dow – is the high level the markets are now at. We saw a spike after the elections but then a pullback. The post-election pop appears to be a head-fake. The VIX has been cycling and did so at the end of this week.
Oil is also reacting negatively based upon the inventory builds. Bespoke Investment Group states oil is in a long losing period that is has not seen since 1983. It also noted that “there has never been a streak of more than 9 straight days where crude oil traded down on the day.”
As we’ve stated numerous times in the past we’ve entered a whole new market and volatility is here to stay.