Just taking the first 12 weeks of 2015, the average weekly trading range for the Dow has been 500 points. The biggest range came on the first week of February, sparked by the January Unemployment number. That week DJM had a 920 point trading range. This current week has had the second widest trading range of 661 points… So FAR. I say so far because Friday we have a half day/ Good Friday. The Dept of Labor will release the March Unemployment figures. The bond futures market has the 10 year future at its 2 -1/2 month high. The market’s yield curve continues to be most sensitive to the Fed’s stance on the shorter end of the yield curve. The 2% to 1.8% yield for the 10 year is the trading range du jour. When futures rally, that’s because people are anticipating a flight to quality. IF that happens Friday, we could see another 3 handle or 4 handle trading range, and quite possibly a 400 plus point trading range on Friday. Plan Accordingly. With great volatility comes great opportunity. However, you have to manage the risk that any one single trade idea creates for you. CER
