All or Nothing Days On Pace For Record Year
Friday, September 16, 2011 at 01:26PM Over the past several weeks, we have made numerous references to how the increased volatility this Summer has caused a big uptick in the number of 'all or nothing' days for the equity market. We consider 'all or nothing' days in the market to be days where the net daily A/D reading in the S&P 500 exceeds plus or minus 400.
So far this year there have been 38 days where the net A/D reading for the S&P 500 was above +400 or below -400. On an annualized basis, this now puts 2011 on pace to see 54 'all or nothing' days, which would make it the most volatile year since at least 1990. Earlier this year, it was beginning to look like the market was returning to a degree of normalcy as the frequency of 'all or nothing' days slowed considerably. Since May, however, the pace picked up and even accelerated in August when S&P downgraded the AAA rating of the United States. In the 28 trading days since 8/8, which was the first day of trading post the ratings downgrade, there have now been 16 'all or nothing' days!
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