I am talking about huge swings in the market.
No, not that type of swing. I am talking about the huge daily changes in market value. See the chart below courtesy of bigcharts.marketwatch.com.
Specifically, this chart shows huge daily changes in the Dow Jones Industrial Average (DJIA) during the week of Sept 22-26.
Monday 9/22 down 105
Tuesday 9/23 down 100
Wednesday 9/24 up 150
Thursday 9/25 down 250
Friday 9/26 up 167
The summary is the market is frothy. Why? Because the QE3 is winding down, the economy is still struggling and the financial sector has been over stimulated. Thus there is a lot of nervousness.
The conclusion: we are overdue for a big correction.
I predict a crash in 2 months. Down over 5 K.
I think a crash will happen sometime between January and July 2015. Unfortunately Obama will take the blame rather than the Federal Reserve and Republicans will look good in the 2016 Presidential race. But the Republicans will still have trouble getting the votes of the minorities and the poor.