Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

UnitedHealth Group Inc. (UNH), Alcoa Inc (AA) – The Federal Reserve and Volatility: More Bark Than Bite

Page 1 of 2

If you thought last month was volatile, you were on to something. News that the Federal Reserve could soon reduce its support for the economy sent the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) barreling up or spiraling down by triple-digit margins in 16 of the month’s 20 trading sessions. But at the end of the day, the reaction to the Fed’s announcement turned out to be far more bark than bite.

UnitedHealth Group Inc

Let me be clear: June was anything but docile for investors. The average daily movement of the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) was 136 points. This was the highest average since the year 2000, and it handily beat out the runners-up (2012 and 2008), which came in at an average of 115. In addition, as I alluded to, a full 80% of the trading days closed either higher or lower by a triple-digit margin.

Year Average Daily Move (Points) No. of Trading Days No. of Triple-Digit Moves % of Triple-Digit Moves
2013 136 20 16 80%
2012 115 21 9 43%
2008 115 21 11 52%
2002 102 20 12 60%
2010 101 22 10 45%
2000 97 20 10 50%
2011 95 22 9 41%
2006 80 22 6 27%
2007 79 21 7 33%
2001 75 21 7 33%
2009 67 22 5 23%
2003 66 21 5 24%
2004 48 21 1 5%
2005 42 22 4 18%

Source: Yahoo! Finance

If one were to stop here, it’d be tempting to conclude that last month was the most volatile June on record, or at least since the turn of the century. But, as you may have guessed, there’s more to the story.

Take a look at the following table. By these measurements, June was actually a comparatively pedestrian month. Average daily volume was the second lowest in the past 14 years. And it was in the middle of the pack in terms of both the average daily percentage movement and the aggregate change (in absolute points and percentage) between the beginning and the end of the month.

Year Average Daily Volume Average Daily Movement Total Point Movement Total Movement (%)
2006 3,149,845 0.73% (18) (0.16)
2002 2,891,860 1.06% (682) (6.87)
2008 2,528,548 0.94% (1,288) (10.19)
2009 2,510,945 0.78% (53) (0.63)
2007 2,489,343 0.59% (219) (1.61)
2003 2,375,167 0.73% 135 1.53
2001 2,326,814 0.69% (410) (3.75)
2005 2,283,355 0.40% (193) (1.84)
2010 2,246,218 1.00% (363) (3.58)
2004 1,957,671 0.46% 247 2.42
2011 1,762,027 0.79% (155) (1.24)
2000 1,726,040 0.91% (74) (0.71)
2013 1,494,224 0.91% (206) (1.36)
2012 1,422,186 0.92% 487 3.93

Source: Yahoo! Finance.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!