Diamonds and Dogs

Talking about Volatility

We hear a lot about the volatility index lately, but I wonder how many of our clients really understand what that is. On their weekly presentation the folks at Dorsey Wright and Associates put it in a different light: From1961 thru 2007 there were 14 days that the DJIA closed +/- 5%. In 2008, including the 700 point drop earlier this week the DJIA already had 12 days that were +/- 5%. Another point they made, we usually declare a bull market if we are up 20% on the DJIA. That was acheived twice in November, only to give it all back.

Things that make you go HUH!
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.