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Learning to Match the Beat of the ‘New World Man’ Market

On Monday, the Dow Jones Industrial Average tumbled 1,175 points, its biggest one-day point decline in history. And though the session saw “only” a 4.60% drop, putting it far down the list of biggest one-day percentage declines, the rapid descent was enough to fill even the most intrepid investor with a sense of dread.

Monday’s Dow decline was compounded by the fact that on Friday, the Dow plunged 666 points, or a 2.54% drop. Yet what was even scarier for strident bulls, cautious bulls and really anyone who owns stocks, is what happened on Tuesday morning.

That day, markets opened with a serious plunge that turned the fear dial all the way up, so much so that in the first hour of trade I suspected we could be at the precipice of a full-blown correction… and possibly even knocking at the door of a bear market.

But then, things changed.

After gyrating wildly throughout Tuesday trade, the Industrial Average closed 567 points higher, or 2.33%. That move included an incredibly wild 1,167.5-point swing during the session.

When asked about what I thought of this hyper volatility by a colleague, my first thought was that we’re living in a “new world” where computer algorithm trading, a.k.a. “algos,” are ginning up the rapid rise and fall of markets.

Click here to read the rest of this article, “Learning to Match the Beat of the ‘New World Man’ Market.

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Investment expert Jim Woods shares the impact computer algorithm trading had in the recent large market swings.

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Learning to Match the Beat of the ??New World Man?? Market

Investment expert Jim Woods shares the impact computer algorithm trading had in the recent large market swings.

On Monday, the Dow Jones Industrial Average tumbled 1,175 points, its biggest one-day point decline in history. And though the session saw ??only? a 4.60% drop, putting it far down the list of biggest one-day percentage declines, the rapid descent was enough to fill even the most intrepid investor with a sense of dread.

Monday??s Dow decline was compounded by the fact that on Friday, the Dow plunged 666 points, or a 2.54% drop. Yet what was even scarier for strident bulls, cautious bulls and really anyone who owns stocks, is what happened on Tuesday morning.

That day, markets opened with a serious plunge that turned the fear dial all the way up, so much so that in the first hour of trade I suspected we could be at the precipice of a full-blown correction? and possibly even knocking at the door of a bear market.

But then, things changed.

After gyrating wildly throughout Tuesday trade, the Industrial Average closed 567 points higher, or 2.33%. That move included an incredibly wild 1,167.5-point swing during the session.

When asked about what I thought of this hyper volatility by a colleague, my first thought was that we??re living in a ??new world? where computer algorithm trading, a.k.a. ??algos,? are ginning up the rapid rise and fall of markets.

Click here to read the rest of this article, “Learning to Match the Beat of the ??New World Man?? Market.

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Written By

Jim Woods is a freelance financial journalist specializing in the markets and the economy. He champions the cause of liberty from a secured location deep inside the Golden State.

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