So, it appears the prediction we made back on January 1 \u2013 that we\u2019d get a lot more buy and sell signals from the VIX this year<\/a> \u2013 is likely to come true. In fact, we\u2019re on the cusp of a VIX buy signal right now.<\/p>\n Take a look at this chart\u2026<\/p>\n VIX buy signals occur when the index closes above its upper Bollinger Band<\/a> and then closes back inside the bands. The blue circles on the chart show the seven buy signals that triggered in 2017.<\/p>\n Here\u2019s how the S&P 500 performed following each of those signals\u2026<\/p>\n In every case, the VIX buy signal occurred at or near at least a short-term bottom for the S&P 500.<\/p>\n The most interesting thing about the signals in 2017, though, is it did not take a large selloff in the stock market in order to create the conditions for a VIX buy signal. The VIX closed above its upper Bollinger Band after just small declines in the market.<\/p>\n That\u2019s likely to be the case if the VIX generates a new buy signal over the next few days. The VIX closed above its upper Bollinger Band yesterday \u2013 after just a nine-point decline in the S&P 500. When the VIX comes back inside the bands, it will trigger the first buy signal of 2018.<\/p>\n Of course, stocks could sell off hard today and\/or tomorrow and force the VIX even higher before it comes back inside the bands. I\u2019d prefer to see a selloff that at least gets the S&P down to test its 9-day exponential moving average<\/a> at about the 2752 level. But, given the current extended condition of the VIX, we\u2019re not likely to see a deeper selloff than that before the index generates a new buy signal.<\/p>\n And given the persistent profitability of the past seven buy signals\u2026 traders should probably just hold their nose and buy when the next one triggers.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n P.S. <\/strong>In my weekly option trading service, the Delta Report<\/em>, we look for signals \u2013 just like what we\u2019re seeing today \u2013 to place low-risk, high-upside trades.<\/p>\n For example, we closed out a 155% gain just yesterday. And the trade hitting inboxes today has the potential to rise over 100% in the coming weeks.<\/p>\n To learn more about the Delta Report<\/em> and my approach to trading today\u2019s market, click here<\/a>.<\/p>\n In today\u2019s mailbag, a kind note from a <\/em>Delta Report reader…<\/em><\/p>\n I just want to say that I appreciate your fine mix of teaching, candor and courtesy.<\/p>\n \u2013 Terry C.<\/strong><\/p>\n<\/blockquote>\n <\/p>\n And a different take on gold and the dollar\u2019s inverse relationship<\/a>\u2026<\/em><\/p>\n Gold and the dollar are manipulated, as you know. So I can\u2019t get too excited about dollar down and gold up.<\/p>\n![](\"https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/sites\/19\/2018\/01\/Screen-Shot-2018-01-17-at-10.50.54.png\")
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