Expect More Volatility

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March 27, 2006

Not that I every listen to Bob Pisani on CNBC, but he mentioned end of quarter volatility this morning as something to look out for. Well you should, because this entire past two months the stock market (NDX) has been nothing but volatile.

There has been little price change between late January and right now in the NDX. Yet the swings are pretty nice. The Fed will have some words on Tuesday and after that it may setup profit taking or a PUSH higher that will ALLOW big money to sell into. They will be able to get their profits out on any fluff move up. This will be the opportunity to short.

Don’t forget to watch the SOX (Semiconductor Index) as its resting on major support and has gone nowhere, but down for 2 months. The SOX is subject to adverse UPSIDE moves from here and with the FED and end of quarter price fluffing there will likely be moves up there.