Today’s volatility in the stock market has been nothing but a joke for the small traders. The DOW opened at the start of the day being up over 300 points. All that meant for the average trader was that you missed the spike in the financial sector as well as most of the rest of the market. At the time of me writing this post the DOW is only up 110 points which show that the smart money is now moving out of the financials to some extent.
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The financial sector opened up higher than the close on Friday, but every stock has come down quite a bit since the opening of the market. If you were one of the many people who thought that the rise in stocks would continued and jump in this morning, you’re down big time at this point. The only way that you could have made any money today in the financial area of the market would have been if you bought last week and sold first thing this morning. All the smart money got in early before the open and a lot has been removed since then. This is one of the many reasons that I normally stay away from this sector.
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Trading stocks in this market is not for the average joe and today’s trading is proof of that. I don’t know at this time how much of this sector has been shorted, but I’m sure it’s more than normal. The DOW sitting at 11330 seems to be the level that we seem to be coming back to after a few days of climbing.
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I did get back into many of the stocks that I sold out of last month and since getting back in I’m down about 4%-6%. I’m still holding off on going all in at this point because of the volatility.
Tags: Financials, Hedge Funds, Stock market for beginners, Stock market news
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