The Market's 'Fear Gauge' Is Signaling a Double-Digit Rally

Investor fear spiked in October... The S&P 500 Index was in correction territory. And investors were on edge as the broad market fell hard for the first time in 2023. [Chaikin PowerFeed]( Editor's note: Today's essay comes from our corporate affiliate Stansberry Research... DailyWealth Trader editor Chris Igou first shared these insights with his subscribers on November 16. Like Marc Chaikin, he expects the market to make big moves in 2024. In this essay, Chris explains how he measures investor fear. Then, he covers when this so-called "fear gauge" hit its last extreme – and what that means for the markets from here... The Market's 'Fear Gauge' Is Signaling a Double-Digit Rally By Chris Igou, editor, Stansberry Research Investor fear spiked in October... The S&P 500 Index was in correction territory. And investors were on edge as the broad market fell hard for the first time in 2023. Today, the index is bouncing back. The fear we saw in October is starting to fade. And the market's "fear gauge" shows a new run higher is likely starting. Specifically, it suggests a double-digit rally is underway. And it's a good reason to bet on continued gains in the market. Let me explain... Recommended Links: [What You Missed Last Week: Severe Crisis Warning - "It's already begun"]( Marc Chaikin helped build Wall Street. Joel Litman spent his career denouncing it. But they both agree about the ONE financial crisis that threatens your wealth more than anything else today... plus the EXACT step to take with your money to protect yourself and see 5X potential gains. Don't get blindsided - see what's coming and how you need to prepare immediately, [right here](. [Billionaires Now FLOODING Into Gold]( Ray Dalio, John Paulson, and many others all recommend you own gold right now. But did you know there's another huge investor (worth more than all the world's billionaires COMBINED) buying gold by the ton? That's why the best move to make right now could be this little-known gold investment (which you can get started with for just $5). [Click here for No. 1 gold recommendation](. One of the simplest ways to measure fear is the CBOE Volatility Index – or the "VIX." When the market starts to crash, the VIX runs higher. A reading of about 20 means fear is elevated. And if it's above 30, fear is extreme. Anything above 40 marks a historic event. The chart below shows the VIX in action. Each time the S&P 500 pulls back in a big way, the VIX jumps... [Chaikin PowerFeed] The quicker and sharper the downturn, the higher the VIX is likely to go. A spike in the VIX tells us investors are panicking. But we can take it one step further to know when stocks are likely to rally afterward... You see, once fear starts to go away, that can indicate more gains are on the way. And we can look to two decades of data to prove it. Let's use the most recent case as our guide... The VIX rose above 20 in October and then pulled back. It's now roughly 13. I recently tested two factors to see if this action is "bullish" for the market... First, the VIX had to be above 20 within the past month. Second, it had to fall below 15 for the first time in a month. Since 2000, buying after these kinds of signals has been a good idea. Check it out... [Chaikin PowerFeed] The S&P 500 hasn't done great since 2000. It has returned just 4.8% per year. But buying after the VIX drops from above 20 to below 15 results in a much better return... These cases typically lead to a 4.1% gain in six months. And over the next year, they usually translate into a 9.9% return. Those returns might not be home runs. But it's a strong case for the broad market. Importantly, this indicator also has a high win rate over the 23 years we studied... We've seen 22 other cases like this since 2000. Buying after those periods led to a six-month gain 77% of the time. And for the one-year return, the win rate jumps to 86%. That's about as reliable as an indicator gets. And it bodes well for the S&P 500 over the next year. Stocks have continued rallying since this indicator flashed in recent weeks. But history shows that more gains are likely in the coming year. Get in as the next leg up begins. Don't miss out as stocks climb higher. Good investing, Chris Igou Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +0.360% 9 19 2 S&P 500 +0.420% 151 275 71 Nasdaq +0.420% 41 45 13 Small Caps +0.740% 642 944 338 Bonds -0.820% Energy +1.080% 1 18 4 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Discretionary +1.23% Communication +0.82% Information Technology +0.57% Industrials +0.20% Health Care +0.18% Financial -0.17% Utilities -0.19% Real Estate -0.29% Staples -1.18% Materials -1.70% Energy -3.28% * * * * Industry Focus Biotech Services 19 86 24 Over the past 6 months, the Biotech subsector (XBI) has underperformed the S&P 500 by -17.23%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #13 of 21 subsectors and has moved up 4 slots over the past week. Indicative Stocks [rating] FOLD Amicus Therapeutics, [rating] ROIV Roivant Sciences Ltd [rating] GERN Geron Corporation * * * * Top Movers Gainers [rating] PARA +12.11% [rating] WBD +6.01% [rating] LULU +5.37% [rating] ALLE +5.00% [rating] FCX +4.89% Losers [rating] ENPH -3.88% [rating] DG -3.84% [rating] ILMN -3.58% [rating] COO -2.88% [rating] NSC -2.81% * * * * Earnings Report Reporting Today Rating Before Open After Close ORCL, CASY No earnings reporting today. Earnings Surprises [rating] JOUT Johnson Outdoors Inc. Q4 $-1.56 Missed by $-1.24 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. 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