Choppy Market

A stock market condition whereby prices swing up and down considerably but with no resulting overall price movement in either direction.

The term is derived from the phrase choppy seas, where a boat will move a lot but not over any large distance as waves prevent it from moving any meaningful distance. The DJIA, for example, may start a six-month period at 10,500 and over the six months move all over the 10,000 to 11,000 range but end the period at around 10,500.


Investment dictionary. . 2012.

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