Summertime Could Cool Off Market Volatility

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stock tradingSecond-half trading begins in earnest Tuesday, but the stock market is likely to take an extended break from recent gut-churning volatility -- at least for a little while.

With no major news on the calendar ahead of next week's start of second-quarter earnings season, longer-term investors should have more sway in a market that's been technically driven for months, says Cort Gwon, director of trading strategies and research at FBN Securities.

"You had short-term traders trading the market into options expiration and Friday's jobs number, but now the short-term traders are actually going to go on vacation for a little bit," says Gwon from the floor of the New York Stock Exchange (NYX). "They've been wanting to take a break since Memorial Day, but the volatility was too high. So you have the short-term traders out of the picture for the next few weeks, and the long-term investors will come back in."

For more on Gwon's take on the market, see the video below:

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Markets

S&P 500 2,243.89 2.54 0.11%
DJIA 19,609.75 60.13 0.31%
NASDAQ 5,400.23 6.47 0.12%
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HANG SENG 22,861.84 60.92 0.27%
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JPY (per USD) 114.04 0.33 0.29%
GBP (per USD) 1.26 0.00 -0.31%

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