MAKING MONEY OFF OF QE-INDUCED VOLATILITY $SPY $DIA $SLV $GLD $TLT $QQQ $TBT $TBF $IWM
Both the stock and bond markets are becoming increasingly volatile. Going back 30 years, high volatility is common after a sustained run and subsequent to the appearance of technical patterns that indicate a reversal. This time is no different. On May 30, I wrote about how an island reversal was highlighting the risk in the market. The island reversal followed an “outside day” traced by the S&P 500 ETF Trust SPY. The chart of SPDR Dow Jones Industrial Average ETF Trust DIA shows how we have recently had over 450 DJIA points swings. Tuesday was especially volatile. As shown on the chart, the market