Summertime Could Cool Off Market Volatility

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

Markets

DJIA 25,064.50 -134.79 -0.53%
NASDAQ 7,825.30 -29.15 -0.37%
NIKKEI 225 22,697.88 -66.80 -0.29%
HANG SENG 28,224.48 213.62 0.76%
DAX 12,604.99 -81.30 -0.64%
USD (per EUR) 1.17 0.00 0.10%
USD (per CHF) 1.00 0.00 -0.14%
JPY (per USD) 112.27 -0.08 -0.07%
GBP (per USD) 1.30 0.00 0.16%