The summer lull in stock trading volumes is bringing high levels of volatility and investors should stick to short-term trading strategies to counteract the whipsaw moves, Steven Mayne, head of research from Falcon Securities, told CNBC.
“During these light volume months, any bit of good news flow the market can fly up, but any bit of bad news flow, the market can suddenly plummet,” Mayne said.
Because of the short-term moves, Mayne thinks that investors should either trade with a very short time horizon, such as intraday, or take a one or two-week view on the market.
Mayne also suggests taking a step back from the stock market and looking at the bigger picture.
He also thinks that the FTSE-100 could slip a couple of hundred points before moving higher.
- Watch the full interview with Steven Mayne above.
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