The wild volatility continued today. This time it was the bulls who benefited. The action is so wild that there isn't much else to do but play the intraday momentum. Luckily, it's moving so fast that you can make some money in very quick trend trades.
The big risk is holding overnight. The mood is constantly shifting and everyone is worried about the next big news event out of Europe. There are still many unknowns and they aren't going to be clarified quickly. The big pullback in the last 10 minutes of a trading was probably folks not wanting to carry much risk overnight.
One of the positives is that there is a tremendous amount of distrust. It won't take much to catch the bears and underinvested bulls by surprise. If the news flow improves, the machines are going to help give us another one of these V-shaped bounces we've had over the last few years.
Be ready for anything. We have an amazingly unstable and volatile market and that is likely to continue as it feeds off itself.