Enough market volatility to make your head spin

07/21/2011 5:55 pm EST

Focus: STOCKS

Jim Jubak

Founder and Editor, JubakPicks.com

Just be careful out there. This is one volatile market.

Headlines in the New York Times saying that President Barack Obama and House Speaker John Boehner were close to a budget deal sent stocks to new highs—and led gold and silver to sell off.

Then came denials from White House Press Secretary Jay Carney, saying the headlines were “incorrect—there is no deal. We are not close to a deal.” House Speaker Boehner weighed in with a Tweet that simply said “False.”

That all knocked 40 points off the intraday high on the Dow Jones Industrials. Gold and silver moved back toward even on the day on the denials.

The market wants there to be a deal. It wants to believe there is a deal.

That sets up a big move down if we get definitive news that there is no deal. Of course, in this environment—and from politicians no less--I don’t expect definitive negative news.