Rebalancing

As the markets rebalance risk, the broad oscillations in the main line indexes will diminish. Skilled traders love constant volatility because the trade opportunity is ever present and scaled losses are recouped again and again. Great markets are tiring but worth it. However, volatility never visits long and the market adjusts back into the ordinary. Despite headlines of continued drama, markets figure out the important elements and flatten out the anxiety long before the talking heads do. Various markets sectors are currently in the transition phase with the flight to zero risk instruments relieving some of the volatility pressure. More important will be determining where the trend arrow is pointing and what strategies will work for the last quarter and beyond. For the indexes the arrow is still pointing up until they close under the March lows.