Whether going up or down, volatility is undoubtedly one of the main characteristics of the market that both welcomes the laurels of those who take advantage of it for the wealth of trading opportunities it provides, as well as being the culprit of many inconveniences, derived from the lack of care with risk management, namely in leverage, which together with volatility make an overwhelming pair, exacerbating the final records of trading strategies.
Sometimes, when conditions are ideal, volatility dominates sentiment and governs market movements, as has happened in recent days, particularly in the two sessions this week in which the inversions of direction were very significant, with oscillations such as have not been verified recently. This choppy sea is a clear sign of a disruption in the fundamentals that have been conditioning Wall Street, and a change of mindset may be underway that threatens to break the bull market that has lasted since 2009, despite the flash crash of the COVID pandemic in 2020.
