{"id":25793,"date":"2025-11-21T07:30:00","date_gmt":"2025-11-21T12:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=25793"},"modified":"2025-11-20T15:27:45","modified_gmt":"2025-11-20T20:27:45","slug":"hold-your-nose-and-start-buying-stocks","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/hold-your-nose-and-start-buying-stocks\/","title":{"rendered":"Hold Your Nose and Start Buying Stocks"},"content":{"rendered":"

Hold your nose and start buying stocks.<\/p>\n

That may seem like odd advice coming from someone who has been so persistently cautious over the past few months.<\/p>\n

But, the action over the past month has knocked some of the excessive bullishness out of the market. It has created the sort of oversold conditions that often precede intermediate-term rally phases. And, it is on the verge of generating a Volatility Index (VIX) buy signal just in time for the seasonal bullish tendencies to kick into gear.<\/p>\n

Take a look at this chart of the VIX along with its Bollinger Bands…<\/p>\n\n

\"\"<\/figure>\n\n

VIX buy signals occur when the index closes above its upper Bollinger Band and then closes back inside the bands.<\/p>\n

Bollinger Bands indicate the most probable trading range for a stock or an index. Whenever a chart moves outside of its Bollinger Bands, it signals an “extreme” condition – which is vulnerable to a reversal in the other direction.<\/p>\n

(This is part of my mean-reversion strategy, which can quickly yield double- or triple-digit gains in this type of market environment. You can learn more about it right here<\/a>.)<\/p>\n

In the case of the VIX, these extreme conditions trigger buy and sell signals for the broad stock market.<\/p>\n

Yesterday, the VIX closed above its upper Bollinger Band for the fourth straight day. When it closes back inside the bands, the VIX will generate a broad stock market buy signal. That could happen as soon as today.<\/p>\n

We’ve seen five such buy signals – or buy signal clusters, when the VIX generated two or more buy signals within just a few days of each other – over the past year. Here’s how the S&P 500 behaved following each of those signals…<\/p>\n\n

\"\"<\/figure>\n\n

In every case, the stock market rallied in the days immediately following a VIX buy signal. Sometimes the rallies were short-term – lasting just a few days – like last December and last March.<\/p>\n

Sometimes the buy signals marked the start of intermediate-term rally phases lasting several weeks.<\/p>\n

Either way, traders did well to buy stocks on the signal.<\/p>\n

Of course, nothing in the stock market is guaranteed. If we go back far enough, we can find examples of VIX buy signals that did not play out profitably – at least, not right away.<\/p>\n

For the most part, though, VIX buy signals have an excellent track record. And since the past five buy signals preceded 120-plus-point rallies in the S&P 500, there’s a good chance this next buy signal will play out profitably as well.<\/p>\n

There are still plenty of reasons to be cautious on the stock market as we head into 2026 and beyond. But, for the next several days – and maybe even the next few weeks – the bulls have the advantage of a VIX buy signal.<\/p>\n

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

\"Signature\"<\/p>\n

Jeff Clark
\nEditor, Market Minute<\/em><\/p>\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 go here<\/a> to check it out.<\/p>\n<\/div>\n\n\n\n\n","protected":false},"excerpt":{"rendered":"

When these signals hit, it\u2019s time to buy\u2026<\/p>\n","protected":false},"author":100,"featured_media":0,"comment_status":"closed","ping_status":"0","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-25793","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\/25793","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\/100"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=25793"}],"version-history":[{"count":1,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/25793\/revisions"}],"predecessor-version":[{"id":25799,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/25793\/revisions\/25799"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=25793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=25793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=25793"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=25793"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=25793"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=25793"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=25793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}