{"id":15838,"date":"2020-02-28T07:30:57","date_gmt":"2020-02-28T12:30:57","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=15838"},"modified":"2020-02-28T07:30:57","modified_gmt":"2020-02-28T12:30:57","slug":"heres-what-traders-should-be-looking-for-right-now","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/heres-what-traders-should-be-looking-for-right-now\/","title":{"rendered":"Here\u2019s What Traders Should be Looking for Right Now"},"content":{"rendered":"

Volatility<\/a> is exploding higher.<\/p>\n

The Volatility Index<\/a> (VIX) closed Wednesday at its highest level since Christmas Eve, 2018. Stocks are falling. The market is collapsing. And folks are willing to pay huge premiums to buy put options as a hedge against even more downside.<\/p>\n

At times like this, traders need to remember the phrase we’ve repeated often here in the Market Minute<\/em>…<\/p>\n

Periods of low volatility are always followed by periods of high volatility, and vice versa.<\/strong><\/p>\n

It seems like now is a good time for some of that “vice versa.”<\/p>\n

Take a look at the following chart of the VIX…<\/p>\n

\"Chart\"<\/div>\n

The VIX traded above 33 at one point yesterday. And, the Bollinger Band<\/a> width (at the bottom of the chart) expanded beyond where it was on Christmas Eve, 2018 – which was arguably the best time over the past year and a half to buy stocks.<\/p>\n

The blue arrows point to those times over the past year and a half when the VIX closed above its upper Bollinger Band – indicating an extremely high level of volatility – AND when the Bollinger Band width (at the bottom of the chart) expanded to an extreme level.<\/p>\n

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

\"Chart\"<\/div>\n

On five of the six occasions, the S&P 500 rallied immediately off of oversold conditions. But, even following the one occasion where the market continued lower – last May – stocks recovered and were sharply higher two months later.<\/p>\n

Volatility is high right now. The VIX is more than 100% above where it was trading just one week ago.<\/p>\n

Now is not the time to be betting on an even further increase in volatility. Traders should be looking for volatility to contract.<\/p>\n

That means traders should be looking for stocks to bottom… and start to rally from here.<\/p>\n

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

<\/p>\n

Jeff Clark<\/p>\n

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

Today in the mailbag, Delta Report<\/em> subscriber Gary shares his feelings about being a member…<\/p>\n

\n

You know, Mr. Clark, I never would have thought that a highly detailed, excellent daily financial newsletter would intermittently touch my heart so deeply.<\/p>\n

Yet, intermittently, your daily letter touches my heart in a most authentic and important way – a way that expands my mind. I merely, and inadequately, say thank you.<\/p>\n

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

And Jeff Clark Trader <\/em>member Whitney, tells us about a gain she’s made on Jeff’s advice…<\/p>\n

\n

I want to thank Jeff Clark for his recent article on GDX. The price was squeezing down and was setup for a breakout in either direction. After reading this article, the next morning I placed an
\noption strangle at the money on GDX (bought a put ATM and a call ATM). Just two days later I closed the trade for a 35% gain.<\/p>\n

I do enjoy reading Jeff’s technical analysis articles – as he’s been right so many times. All the best.<\/p>\n

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

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

Volatility is exploding higher…<\/p>\n","protected":false},"author":43,"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-15838","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\/15838","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\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=15838"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/15838\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=15838"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=15838"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=15838"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=15838"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=15838"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=15838"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=15838"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}