Weekend Sleuth: Bring on the Volatility

The Penny Sleuth Features: Penny Stocks, Options and High-Growth Opportunities! Weekend Sleuth: Bring on the Volatility By Jonas Elmerraji March 19, 2011 Dear Penny Sleuther, Market volatility spiked last week — and not surprisingly, buy-and-hold investors are running for the hills. Of course, volatility doesn’t necessarily mean that stocks are headed lower. In fact, volatility can actually be a good thing… We’ve looked in-depth at volatility in the past. Essentially, it’s a measure of the risk in stocks at any given time. While that normally has a negative connotation, experienced investors know that risk also goes hand in hand with reward. So, what kind of rewards are we talking about here? The chart above shows the VIX index, an instrument that shows the implied volatility of the S&P 500. With the VIX sitting in the 24 range as of this writing, we can calculate that the market’s basically pricing in a 6.9% potential move in the S&P 500 in the next 30-days. So even though volatility rose nearly 63% in the last month, we’re still not talking about white-knuckle price movements in stocks. That said, with the intermediate downtrend broken in volatility, the market looks clear for higher risk/reward numbers in the near future. It’s yet another thing to consider as you venture out into the market… Urgent Profit Alert to Hit Your Inbox on Wednesday… Witness strategy that produced 97% success — 123 winners in 127 moves! You profits could start as soon as Wednesday. Get all the details right here… Wireless Data Investments and Chart Pattern Trading Tips Last week the Penny Sleuth featured a look at investible wireless data trends, chart pattern trading tips, and a whole lot more. In case you missed it, here’s a recap of this week’s investment insights… Get Rich in the Land of the Blue Sky — Chris Mayer stopped by on Monday with details on investing in Mongolia’s resource rich economy. Profit from New Methods of Visualizing Sentiment — Forex veteran Abe Cofnas joined us on Tuesday to explain some interesting new methods of visualizing, analyzing, and profiting from sentiment readings. 3 Important Steps That Could Save Your Portfolio — On Wednesday, Greg Guenthner shared three actions you can take today to save your portfolio in this time of increased volatility. How the Wireless Crisis Could Bring Profits to Your Portfolio — Tech expert Ray Blanco chimed in on Thursday with a look at profiting from the boom in wireless data demand. Chart Smarts: How to Trade a Head-and-Shoulders for 51% Gains — Finally, on Friday, I shared trading tips to help you profit from one of the best-known technical patterns. Comment or question about an article? Just click on any article’s title above and join the conversation by leaving a comment... We’ll be back next week with more thrilling insights on today’s market climate… Until then, please send me any editorial comments or suggestions at editor@pennysleuth.com. Have a good weekend, Jonas Elmerraji Managing Editor, Penny Sleuth Watch the Presentation: Retire with $200? Sounds impossible, but it’s not! This “Secret $200 Retirement Blueprint” shows you step-by-step how to grow a monster-sized nest egg with a little time and a tiny grubstake. Plus, act before the deadline and claim 5 reports absolutely FREE. Click here now to watch the presentation. The Secret $200 Retirement Blueprint Investing in Penny Stocks What Is Technical Trading Follow the Penny Sleuth on Twitter, here. Become a Facebook Fan of The Penny Sleuth, here. The Penny Sleuth, a free e-letter, offers independent news and commentary on small cap stocks, options and high growth opportunities. We sent this e-mail to KNUMASSCN@gmail.com because you or someone using your e-mail address subscribed to this service. 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