By Chris Vermeulen of TheGoldAndOilGuy.comNEW YORK ( TheStreet) -- The stock market has seen some wild price swings due to earnings reports and comments from Fed Chairman Ben Bernanke. I have pointed out that such a stock market environment gives you only a brief moment to take profits before the market starts going wild, shaking traders out of positions. This increased volatility stems from a couple of things:
- Stock market participants know the financial system is still riddled with unethical practices/manipulation. This causes everyone to be extra jumpy/emotional and causes volume surges in the market as the herd starts to get greedy or fearful.
- Volume overall on the buying side of things just isn't there. I see some nice waves of buying, but it doesn't move the market up much. Then it only takes a small wave of sellers for the market to drop. Investors are just scared to buy stocks, and that is not a good thing.