Volatility – Are You The New Kid On The Block?

Just an aggravating stat for all those who keep talking about the enormous volatility. The historical average intraday high price over the intraday low price is a swing of 1.482%, with a 1% variance (high / low) occurring 71.3% of the time over the past 50 years. The 2013 year-to-date average is a 0.916% variance, and has occurred 34.5% of the time. 2008 had a 90.1% rate, an average daily high / low of 2.809%, with 27 times, over 10% of the trading days, when the market opened up or down over 1% and closed more than 1% in the other direction (14 opening higher than 1% and closing over 1% down, and 13 opening off 1% and closing up at least 1%), and that was just on the open and close. 2008 had 6 days of at least a 10% spread between the high and the low – think of the S&P moving 160 points or the Dow 1,500 points intraday. More volatility then we we’ve had recently, yes, as long as recently is very short term.

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