Summertime Could Cool Off Market Volatility

Before you go, we thought you'd like these...
Before you go close icon
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:

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading