We like to track stock variance. This is how much stock prices move each day, without concern about direction. We have seen stock price variance increase since at least May 2022 when we started measuring this.
On February 27, 2023, the stock price variance of the S&P 500 Equity Index ETF, or $SPY, had its variance peak about a week ago, and now is down one tick. It isn't much, but it might be signaling a peak in variance.
Once variance in stock prices fall, it will reflect a lessening of speculative interest and activity. This will be good for some stocks (those that are being shorted aggressively), and bad for others (stocks that will fall until they reach a natural support level).
What is the level?
For a year ending 3/27/2023 (inclusively):
For 1,640 stocks with a market capitalization of $2B or more, the variance is:
All Stock Variance = 0.0002843
You still 'save on variance' if you buy and hold a market-capitalization weighted index or basket of stocks.
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Full-time investment advisor and student of the financial markets.