Stock market volatility has been increasing in a big way this year.
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.
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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.
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.
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