But, the VIX isn’t the only indicator that’s telling us a bounce is near. <\/p>\n
The McClellan Oscillators<\/a> (NAMO and NYMO) have also dipped into oversold territory. They’re at levels that often mark short-term bottoms for the stock market.<\/p>\n Here are the charts…<\/p>\n Both the NYMO and the NAMO closed below their lower Bollinger Bands on Friday. That condition often occurs at or within a day or two of a short-term bottom for the S&P 500. <\/p>\n The term “short-term” is really important here. Oftentimes, the first rally off of this condition only lasts a few days. Then the oscillators, and the stock market, roll over and head back down again.<\/p>\n That’s what happened in mid-May, the last time the oscillators looked the way they do now. The stock market enjoyed a blistering four-day bounce, where the S&P gained 80 points. Then it rolled over and dropped to a lower low before establishing a more significant bottom.<\/p>\n That’s the same type of scenario I’m looking for this week.<\/p>\n Conditions are oversold enough to fuel a strong bounce in stocks that lasts for a few days. But, this isn’t any longer the sort of market where traders can buy stocks and just leave them alone for several weeks or months.<\/p>\n This is a trader’s market. In order to profit, you have to be willing to get into a position and then get out of it just a few days later.<\/p>\n Think about the essays we’ve published here in Market Minute<\/em> for the past few Mondays…<\/p>\n We came into July looking for a short-term rally<\/a>, and using it to take profits. We got a VIX sell signal a few days later and we started off the next week<\/a> looking for a decline. That decline lasted only a few days. Buyers stepped up and stocks started rallying again the next week.<\/p>\n But, as we got closer to the end of the month, conditions were overbought, and we prepared for another decline.<\/a> Now, that decline has just about run its course. And, the market is setting up for a bounce.<\/p>\n Conditions are likely to look a lot different a week from now than they do today. But, that’s great. “Different” conditions are what allow us to trade. This is a rough environment for the “buy-and-hold” crowd. But, it’s a great environment for traders.<\/p>\n So, for this week at least, I’m buying. Next week will probably be a different story.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n P.S.<\/strong> Like I said above, it’s a trader’s market right now. The typical investor’s buy-and-hold strategy just won’t work with current market conditions. Especially with what I see on the horizon…<\/p>\n In short, I see a market crash coming. Investors could lose it all. But traders – especially those who use my strategy<\/a> – could make a fortune in the days and months leading up to it.<\/p>\n To find out how you could profit off the next market crash, read on here. <\/a> <\/p>\n Today, a subscriber comments on the service…<\/p>\n I love your service and am following all of your recommendations. [To learn more about Jeff Clark Trader<\/em>, click here<\/a>.] Some picks turned out to be dogs but some turned out to be home runs. Learning a lot about options and also about myself, which is a good thing. Wish I had found you 20 years ago. Thanks.<\/p>\n![\"\"](\"https:\/\/jc-stable.s3.amazonaws.com\/ee-assets\/channels\/articles\/mm\/201908-mm\/20190805-MM-01.png\")
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