{"id":13596,"date":"2019-05-10T07:30:51","date_gmt":"2019-05-10T11:30:51","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=13596"},"modified":"2019-05-10T07:30:51","modified_gmt":"2019-05-10T11:30:51","slug":"on-the-verge-of-a-buy-signal","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/on-the-verge-of-a-buy-signal\/","title":{"rendered":"On the Verge of a Buy Signal"},"content":{"rendered":"

The stock market has done a great job of reminding traders that low levels of volatility are ALWAYS followed by high levels of volatility, and vice versa.<\/p>\n

We got the “higher levels of volatility” this week. And for next week, it looks like we’re set up to get a little “vice versa.”<\/p>\n

Take a look at this updated chart of the Volatility Index (VIX)<\/a>…<\/p>\n

\"\"<\/p>\n

The VIX is on the verge of generating a new short-term broad stock market buy signal. VIX buy signals occur after the index closes above its upper Bollinger Band<\/a>, and then closes back inside the bands.<\/p>\n

The VIX has closed above its upper Bollinger Band for three straight days. And, if the VIX closes lower at all today, it’s likely to close back inside the bands – generating a new buy signal.<\/p>\n

Over the past year, the VIX has generated four other buy signals. They’re circled in blue on the chart above.<\/p>\n

Here’s how the S&P 500 performed following each of those signals…<\/p>\n

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All the buy signals occurred at the end of a downtrend. And all of them led to at least a short-term rally in the broad stock market. Heck, even the small blip higher following the VIX buy signal last October was good for about 60 S&P 500 points.<\/p>\n

There has been a lot of technical damage done to the stock market this week. There’s a good chance the late-April high of 2950 on the S&P 500 may prove to be the top of this ten-year bull market. That means stock prices may be headed lower, perhaps much lower, in the weeks and months ahead.<\/p>\n

But, for the next several days anyway, traders should be aware of the potential for a VIX buy signal. If it happens, we’ll likely get a pretty good bounce higher in the market over the short-term.<\/p>\n

Best regards and good trading,<\/p>\n

<\/p>\n

Jeff Clark<\/p>\n

P.S.<\/strong> Like I revealed to you folks yesterday, I just launched a brand-new service called Jeff Clark Trader<\/em>.<\/p>\n

I created this because I believe anyone can use what I call my “three-stock” strategy<\/a> to make money in the market. In short, this strategy requires only investing in three specifically chosen stocks, over and over again, to fund a comfortable retirement.<\/p>\n

My team and I have been hard at work at this one. And it’s the lowest price my publisher has ever offered: just $19.<\/strong> But, it won’t be available for long.<\/p>\n

To learn more and claim your subscription, just click here…<\/a><\/p>\n

Reader Mailbag<\/strong><\/h2>\n

In today’s mailbag, a Market Minute<\/em> reader shares a profit booked on bitcoin…<\/a><\/p>\n

\n

Nice trade on bitcoin, which I took when you recommended it. I closed the trade today for approximately $15,500. Excellent work on your part.<\/p>\n

– John<\/strong><\/p>\n<\/blockquote>\n

A Delta Report<\/em> subscriber also shares a booked profit…<\/p>\n

\n

Jeff, thanks for the nice trade! In at $1.68 per contract and out at $2.80.<\/p>\n

– Jake<\/strong><\/p>\n<\/blockquote>\n

And a few subscribers share their current trading strategies…<\/p>\n

\n

I have purposely reduced my portfolio’s overall beta average. Having had too little money invested in bonds for too long, I am systematically working my bond holdings up toward more desirable levels…<\/p>\n

Based on earlier warnings from you… I had analyzed the entire portfolio and sold everything that did not weather last October’s drop very well. I held onto the holdings that went up in October but fell in December (primarily income-generating names). <\/p>\n

In a $800,000 portfolio, I am only down $1500 today, with the S&P 500 currently down 28 points. I can live with that, in spite of being retired. As you can tell, your advice weighs heavily on my decisions. I am very thankful for your guidance. Keep up the good work.<\/p>\n

– Ray<\/strong><\/p>\n<\/blockquote>\n

<\/p>\n

\n

Newbie here. Taking small trades as I get my feet wet. First one profitable. Second expired worthless. Just closed another position, after sweating yesterday as the price of the option went back down. Back to happy because I took the sub offer after watching your trading webinars for the last few months. Keep up the good work.<\/p>\n

– Fred<\/strong><\/p>\n<\/blockquote>\n

<\/p>\n

\n

I’ve been with you for many years now and keep learning as well. I like the way you follow the broad stock market with the S&P 500. Now, for a couple of months, I’ve followed $NYSE. This index closed today under its 50-day moving average and looks more vulnerable than $SPX.<\/p>\n

– Pierre<\/strong><\/p>\n<\/blockquote>\n

Thank you, as always, for your thoughtful insights. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Next week, it looks like we\u2019re set up to get a little \u201cvice versa.\u201d <\/p>\n","protected":false},"author":34,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[52],"newsletter-type":[],"ticker":[],"class_list":["post-13596","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-mike-merson"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/13596","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=13596"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/13596\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=13596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=13596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=13596"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=13596"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=13596"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=13596"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=13596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}