During the month of March the NCAA has a basketball tournament. It is so well known and soo many games are played that the entire month of the tourney is labeled "March Madness". The tournament game scores are volatile. Scores can change at a rapid pace and the winner can change within minutes. A team that was leading by 10 points can lose because the pace is changing so fast within the game. In the stock market, the month of March is also called "March Madness" with very similar characteristics of chaos.

Throughout the month of March, the stock market will have various sectors moving in and out of favor. Say, for example, the Internet sector is leading, and out of nowhere the big industrial sector starts leading. Because of these movements some stocks such as low-priced stocks will move very big. Usually entire sectors or groups will be moving. The biggest movers are usually beaten-down, low-priced stocks that move big percentages.

There are various reasons for the stock market "March Madness". Checks from taxes are seen as one reason for the increase in volatility. A tax-refund check may be used to purchase stock. Investor mood from the winning or losing of a NCAA game is seen as another variable. Investors get very emotional over the win or loss of a game and may irrationally buy or sell stock as celebration or therapy. Market flux can also reflect the madness of the basketball fans. Anything goes. Some stocks will go out of favor and some stocks will come into favor. The sleepers will wake and move.

There are many influences on why the stock market experiences "March Madness". The strongest indicators are increased volatility and sectors moving in and out of favor. If you are looking to score, your best bet is keep your eye on the movers.