{"id":13657,"date":"2019-05-20T07:30:36","date_gmt":"2019-05-20T11:30:36","guid":{"rendered":""},"modified":"2019-05-20T07:30:36","modified_gmt":"2019-05-20T11:30:36","slug":"this-indicator-looks-ready-to-pop-again","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/this-indicator-looks-ready-to-pop-again\/","title":{"rendered":"This Indicator Looks Ready to Pop Again"},"content":{"rendered":"

Trading off the Volatility Index (VIX)<\/a> over the past few weeks would have been a profitable strategy. It just might produce profits this week as well.<\/p>\n

Earlier this month, we pointed to<\/a> the low reading in the VIX, and the record speculative short position in VIX futures contracts as a warning the stock market might be in for a rough period. The S&P 500 peaked shortly thereafter, and tumbled more than 4% in two weeks. Meanwhile, the VIX spiked from below 13 to an intraday high above 22 – a gain of almost 70%.<\/p>\n

A few days ago, we took another look<\/a> at the Volatility Index, and noted it was on the verge of generating a broad stock market buy signal. The S&P 500 rallied 90 points from last Monday’s low to last Thursday’s high as the VIX fell all the way back down to 15.<\/p>\n

That’s two solid trading signals from the VIX in about two weeks. And, it looks like we’re about to get another one. <\/p>\n

Take a look at this 60-minute chart of the Volatility Index…<\/p>\n

\"\"<\/p>\n

It looks like Friday’s decline in the broad stock market has caused the VIX to break out to the upside of a falling wedge pattern.<\/p>\n

Admittedly, this isn’t the cleanest of wedge patterns. It’s a little too steep, and the support line doesn’t connect with all the “dots.” But, since the MACD<\/a> and RSI<\/a> momentum indicators both show positive divergence – meaning they’ve been moving higher while the VIX has moved lower – we might want to be a little less strict about the cleanliness of the pattern.<\/p>\n

This chart looks to me like it has the potential to press higher again. And a rising VIX is usually accompanied by a falling stock market.<\/p>\n

This is a 60-minute chart. And patterns on this time frame tend to play out within just a few days. So, if the VIX is going to move higher, then we should see that move get started sometime early this week.<\/p>\n

Traders might consider taking advantage of any strength in the market early today as a chance to add some short exposure.<\/p>\n

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

<\/p>\n

Jeff Clark<\/p>\n

P.S. <\/strong>Because you read today\u2019s Market Minute<\/em>, you\u2019re now better prepared for a market crash than the countless investors who didn\u2019t. And I\u2019m glad\u2026 because when stocks fall, most investors won\u2019t know what to do.<\/p>\n

They’ll panic. So will the mainstream talking heads. But smart traders have the chance to see windfall profits during a market crash… especially if they use my strategy<\/a>.<\/p>\n

In just two days, I’m going to reveal the exact date I believe the market could crash<\/a>. And, I want to show you how you can turn the next crash into a goldmine.<\/p>\n

Tune in this Wednesday, at 8 p.m. ET, while I reveal all the details. Reserve your seat now<\/a>.<\/p>\n

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

In today’s mailbag, a Delta Report<\/em> subscriber gives Jeff a quick thanks…<\/p>\n

\n

Let me say how much I appreciate your discussions about what’s going on in the market and how you see things. This is a great learning environment… thanks for the great service.<\/p>\n

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

Do you see a market crash coming in the near future? Why or why not?<\/p>\n

Let us know what you see coming in the market, along with any other trading questions, stories, or suggestions at feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Trading off the VIX over the past few weeks would have been a profitable strategy. It just might produce profits this week as well…<\/p>\n","protected":false},"author":37,"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":[7],"newsletter-type":[],"ticker":[],"class_list":["post-13657","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/13657","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\/37"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=13657"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/13657\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=13657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=13657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=13657"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=13657"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=13657"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=13657"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=13657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}