Markets were up strongly today, bouncing back from this week’s beatdown.
But here’s the thing. Correlation is high and still increasing. I’ve talked a lot about this recently. Correlation is tricky stuff. When you see stocks moving with no headline or hard, identifiable event driving that move - that’s correlation.
And what it takes up, it can take down.
Sure, that’s not the most cheerful New Year message, but I’m here to help you make money. Traders like us are going to have to shift gears and contend with increasing volatility.
That’s not a bad thing at all. Here’s what I see…