A day after the Federal Reserve slashed interest rates, averting a nasty nosedive in the market, Wall Street watched as the Dow Jones industrial average oscillated like a yo-yo, diving nearly 250 points in the opening minutes, spending the day in a series of rallies and swoons, and then closing up — way up — with a gain of nearly 300 points, snapping a five-day losing streak.
Market volatility reached its highest level in nearly five years. In a three-hour span in the afternoon, the blue-chip index ricocheted from a 326-point hole to a 275-point gain.
“The market has this out-of-control feeling, and until the market sees some semblance of stability, it’s going to continue to be very volatile,” said Richard Sparks, senior equities analyst at Schaffer’s Investment Research.
You can probably guess who profited from the last few days' erratic behavior in the stock market. As I posted previously, fear begets panic in ordinary people but experienced stock traders understand that right now is the best time to buy and hold stock for the long term. If I had any cash, I would have put it into the stock market this morning right after that big downward plunge!