Stock market volatility has been increasing in a big way this year.
Continue Reading Below
The last time I remember seeing such big moves in stock prices was back in the late 1990s, when the dot.com technology bubble was booming and then later collapsed in early 2000.
My strategy for now is to make quick moves in and out of the market with the hope of making small gains until a clear market trend emerges.
Continue Reading Below
Energy stocks are in a downward spiral even though they have had a bounce in early February. I am carefully watching to see if a bottom on oil prices starts to take hold.
I’ve also noticed that some mineral and mining stocks have also had a small bounce up.
Some stocks that I like for the longer term, and am considering establishing positions in, include: General Motors (GM), Discover Financial Services (DFS), Delta Airlines (DAL), Pandora (P), AK Steel Holdings (AKS), Yandex (YNDX), JD.com (JD) and SouFun Holdings (SFUN).
The question is when I will be able to buy these stocks at attractive prices.
I still do not have a solid outlook for the months ahead as the current stock market is in a range that has been compressing for weeks.
I am waiting to see if the S&P 500 Index breaks out above the 2,100 level in a solid manner or if it breaks below 1,975 to around 1,950 and starts a serious downtrend.
So many stocks are moving in so many directions that I think a great big move in stocks is about to occur in my opinion.
The swoon in energy prices has hit commodity-sensitive economies like Africa, Australia, Canada, Russia, Brazil and the Middle East.
Will these market conditions continue or will a new buyer on the scale of China emerge and lift the energy markets?
Will the US market rally continue? Or will this year see a correction or even a bear market?
Time will tell. In the meantime, I hope to ride along with whatever direction emerges.
Like what you read?
Subscribe to our once-weekly email newsletter and get the best posts delivered to you in one convenient place, to browse at your leisure:
DISCLAIMER: The investments discussed are held in client accounts as of January 31, 2014. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable. Past performance is no guarantee of future results.
The post Stock volatility recalls late-’90s market appeared first on Smarter InvestingCovestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures.