As I write this the Dow Futures are up 210 points, the Dow has now rallied 1,000 points in a few hours from the low it registered Monday when a few were calling for a replay of 1987. A thousand points seem a little dramatic, but percentage wise is 6.7%, nothing to sneeze at.
The market has become extremely volatile, until the volatility subsides you have to be careful chasing huge rallies and selling huge sell-offs. I still believe that the current situation is playing out just like the summer of 2011 did, which I explained HERE.
If we continue to follow the 2011 playbook, then expect more volatility, a few retest of the recent low, with the ultimate low coming in October. I’m following the 2011 playbook loosely. Every year and situation is different.
My only piece of advice is not to panic on the way up, nor, on the way down.
2011 Road Map
My name is Frank Zorrilla, a Registered Advisor in the State of New York.
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