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Message: POG v. Dow

Add volatility to the issue, and the future can look better or worse depending upon where your bets lay.

EXTRACT:

"So we can see we have an unusual setup here in the market, with increasing volatility, yet the inability of that volatility to contribute to either a breakout or a breakdown out of the recent trading range. While we aren’t going to attempt to predict the direction of resolution to this range, history – and physics – suggests the range break should be a forceful one. Consider a laser for a moment. In a laser, light is commonly amplified by directing it back and forth between mirrors within a small confine. This amplified light is then directed through a tight opening, resulting in a intense, high-energy beam. So it is with a tightly traded, yet volatile security or index. The break of the S&P 500 range should should occur with elevated force."

http://jlfmi.tumblr.com/post/116396072495/despite-range-bound-market-stock-volatility

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