The All or Nothing Market
Thursday, June 10, 2010 at 03:51PM The S&P 500 finished up by nearly 3% today and with that kind of rally it should come as little surprise that all 24 major groups finished up as well. Though not always the case, when the market finishes the day up (or down) 3%, you will often see that all the major groups are up (or down) on the day. What is surprising about the current environment is the frequency with which the market is having 'all or nothing' days. Including today, the S&P 500 has now had six all or nothing days over the last ten trading days, which is practically unheard of. The chart below shows the frequency of all or nothing days over a ten day period going back to 2002. The only period where the S&P 500 had more all or nothing days was back in in November 2008.
Reader Comments (2)
Interesting. I wonder what we might speculate about what these types of periods represent. In the simplest terms, the macro picture dominates. Another way of looking at it is that there's a lot of following going on, with not a lot of leading. Basically everyone in the market chasing the macro trend and not wanting to be left out of a move up or holding the bag on a way down. Seems to come when the news cycle gets very heady.
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