{"id":19618,"date":"2022-04-13T07:30:42","date_gmt":"2022-04-13T11:30:42","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=19618"},"modified":"2022-04-13T07:30:42","modified_gmt":"2022-04-13T11:30:42","slug":"why-volatility-is-here-to-stay","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/why-volatility-is-here-to-stay\/","title":{"rendered":"Why Volatility Is Here to Stay"},"content":{"rendered":"

Back on March 9<\/a>, I wrote about a chart pattern I had spotted in the S&P 500 (SPX).<\/p>\n

Specifically, this pattern was a falling wedge, and it was telling us to get ready for a surge of bullish<\/a> price action in the index.<\/p>\n

Fortunately, the pattern played out exactly as expected, and now it’s time to take profits on this trade…<\/p>\n

Right now, the market is at a dangerous junction.<\/p>\n

We could break a little bit higher, but my analysis suggests that even if we do, we’ll see violent price action that could eventually draw us back toward the lows from February.<\/p>\n

That would mean that SPX will trade back around 4200.<\/p>\n

Let’s look at a chart of the SPX to show you what I mean…<\/p>\n

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

I’ve traced out the wedge on this price chart using the two blue trendlines.<\/p>\n

Wedge-shaped chart patterns usually provide very high-probability targets.<\/p>\n

Often, the move that breaks out of the wedge will travel to the start of where the wedge began to take shape. With SPX, that level comes in around 4587.<\/p>\n

The market reached this target on March 29, closing at 4631.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Usually, after the breakout of a wedge reaches this preliminary target the market will pull back.<\/p>\n

It looks like the pullback is already in effect… The SPX is currently trading 4.73% off that March 29 high.<\/p>\n

Now, if I put my long-term investor hat on, I believe it’s likely we’ll be trading much higher over the next several months.<\/p>\n

However, from a short-term trading perspective, I expect this volatility to stick around for a while longer.<\/p>\n

The bottom line is that I’m not in a rush to exit my long-term positions, but I’ll be looking for opportunities to take advantage of the downside that’s now likely to hit the markets.<\/p>\n

Happy trading,<\/p>\n

Imre Gams
Analyst, Market Minute <\/em><\/p>\n

P.S.<\/strong> Tonight at 8 p.m, ET, you’re invited to join Jeff Clark as he teaches his oldest son Grant his highly profitable trading technique. It’s the same technique Jeff used to retire wealthy at just 42.<\/p>\n

His goal is to show how everyday folks could potentially double their money over and over again… much faster than buying and holding stocks<\/a>.<\/p>\n

Now’s the perfect time to try out his technique… With Jeff’s guidance, you could make $1,000’s a week… no matter where stocks go, and no matter what happens with Russia, inflation, or the economy.<\/p>\n

Jeff is so confident in his technique that his son Grant will attempt to double his life savings – all on camera. During this presentation Jeff will also give away a free recommendation… so you can try it out for yourself. This event is quickly approaching, so click here to join now<\/a>.<\/p>\n

<\/p>\n

Reader Mailbag<\/h2>\n

In today’s mailbag, Jeff Clark Trader<\/em> member, James and Market Minute<\/em> subscriber Edward, share their thoughts on the government’s influence on the markets…<\/p>\n

\n

The only problem with gold stocks is that the juniors are being controlled through naked short selling by Virtue and Citadel… making the normal junior trade in a gold bull market a disaster. As usual, the regulators are doing absolutely nothing to stop the abuse as we have no rule of law.<\/p>\n

The government isn’t acting as this is official government policy in action. And why are the gold majors at or near all-time highs? Because they’re part of the system and want to acquire these juniors on the cheap as frustrated junior stockholders sell out!<\/p>\n

– James F.<\/strong><\/p>\n<\/blockquote>\n

\n

Hi Jeff,<\/p>\n

I’m not a real smart guy with investing, but lately I’ve been thinking that a perfect scenario to erase billions off the Fed’s books would be for Congress, with a stroke of a pen, to trap those billions outside of the system never to be admitted back in.<\/p>\n

Being patient and allowing time for investors at every level to move into cryptocurrency is a saving grace for the Fed. Have not countries revalued and replaced their own currencies to achieve the same fiscal balancing act? It sounds like a conspiracy theory, I know. But is anything beyond any government trying to save itself?<\/p>\n

– Edward R.<\/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

<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s time to take profits on this trade…<\/p>\n","protected":false},"author":49,"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":[76],"newsletter-type":[],"ticker":[],"class_list":["post-19618","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19618","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\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=19618"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19618\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=19618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=19618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=19618"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=19618"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=19618"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=19618"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=19618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}