Are equity market trends (^DJI, ^IXIC, ^GSPC) trying to signal that investors should begin to err on the side of caution? Schwab Head Trading and Derivatives Strategist Joe Mazzola joins the Market Domination Overtime team in-studio to address market volatility (^VIX) that has shaken up stocks and persuaded investors to buy the dip in recent weeks.

"So the top three stocks that we saw purchased in the course of May through our STAX [Schwab Trading Activity Index] report would have been Nvidia (NVDA) being number one, Amazon (AMZN) number two. And then the third one, which I thought was really interesting kind of given the pullback that it had, was Intel (INTC). So you know old tech," Mazzola says, noting investor rotations into the energy sector.

At the end of August, Mazzola noted equity investments to have pulled back. "And that really rotated into fixed income. I don't know whether or not there... people are trying to kind of front run the Fed [Federal Reserve] in next week's meeting. I think that's a possibility. Maybe they're trying to buy it before yields (^TYX, ^TNX, ^FVX) go down further, that to me was probably that would be my guess. But in terms of other commodities, haven't seen a whole lot of buying that's kind of precluded any big moves there.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Luke Carberry Mogan.