Is Our Historically Boring Market About To Get Exciting? You Bet

NYSE Spring

As the NYSE chart above illustrates, most of the primary US Indices have been compressing for more than a year. Some more than others. This is one of the reasons some people are calling today’s stock market boring.

It is not boring, it is accumulating energy prior to a massive move. Higher or lower. To be exact, the stock market is doing the following two things…..

It is doing its job by fooling 99% of investors out there. It is putting most traders and investors to sleep prior to a large move initiation. As of today, very few people believe that the Dow can exhibit a sustained 1,000 point move, let alone a rapid 5,000 point move. Yet, that is exactly what the market is getting ready to do. As always, most investors will be caught with their pants down.
The market is accumulating energy for a large move ahead. Up or down. The process is very similar to winding up a powerful spring. It appears to be stable and controlled, that is, until the spring snaps and a massive amount of energy is released in a rather rapid fashion. Exactly the same thing is about to happen in our capital markets.

Luckily, my mathematical work allows me to know when this period of low volatility ends. To the day and to the point. If you would like to find out when that is, please Click Here.