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
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

Subscribe

Enter your email:

Delivered by FeedBurner

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!