The Crystal Ball Is Warning of a Fall

There’s energy stored up for a move. [Jeff Clark's Market Minute]( The Crystal Ball Is Warning of a Fall By Jeff Clark, editor, Market Minute This morning’s release of the non-farm payrolls report is likely to cause a big move in the stock market. That shouldn’t be too much of a surprise. The market is often [volatile]( following the monthly jobs report. This month, though, stocks seem to be set up for a much larger move. You see, for the past two weeks the S&P 500 has been stuck near the 4200 level. Oh sure, we’ve been a little bit higher and a little bit lower. For the most part, though, the index hasn’t done anything for two weeks. So, there’s lots of energy stored up to fuel a big move… Recommended Link [How is your 401k doing today?]( [image]( Why make only 3% when you could make 582% on your money? Instead of buying stocks and praying they go up… Jeff Clark’s “Money Multiplier” strategy could’ve helped you put 194x MORE money into your account… over the same time! Instead of barely squeezing a paltry $150 out of the market… you could have had the chance to make $29,100! Want to see how it works? [Show me the way!]( -- Look at this 15-minute chart of the S&P 500… [(Click here to expand image)]( After a great deal of volatility during the first three weeks of May, the index has been range-bound for the past two weeks. It needs some sort of catalyst to break out of this range, and I suspect today’s jobs report will do the trick. The question, of course is… Which way will it go? The crystal ball says we’ll go lower from here. Let me explain… Long-time readers know about the predictive power of [VIX]( option prices. We’ve used extreme deviations in option prices before as a sort of “crystal ball” for the immediate direction of the stock market. Free Trading Resources 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 – at zero cost to you. Just [click here]( to check it out. In fact, the last time we peered into the crystal ball was in [late January](. VIX option prices were warning of an impending decline. One week later the S&P 500 was 150 points lower. We have the same sort of setup today… On Wednesday, the VIX closed at 17.50. At that level, the VIX June 16 $18 puts were $0.50 [in the money](. And, they were trading for $1.00. At the same time, the VIX June 16 $18 calls were $0.50 [out of the money](. Yet they were trading for $2.00. [Wall St Legend Who Picked Last “Investment of the Decade” Reveals “#1 for 2020s”]( In other words, traders were willing to pay 100% more for a VIX [call option]( that was out of the money than for a VIX [put option]( that was $0.50 in the money. This tells us that traders who are making bets on the VIX expect the index to move higher over the next two weeks. This sentiment is even more evident if we go out a little further and compare the VIX July 21 $18 calls with the VIX July 21 $18 puts. The calls closed Wednesday at $4.40, while the puts were only $1.25. VIX calls are far more expensive than the equivalent put options. Traders clearly expect the index to move sharply higher between now and late July. And, a rising VIX usually goes along with a falling stock market. And, today’s jobs report could be the catalyst that sets that decline in motion. Best regards and good trading, Jeff Clark P.S. Every week, my colleague Eoin Treacy takes some time to share his musings on the current goings-on in the markets. So far, he’s discussed [the rally in gold]( [bitcoin]( and[inflation](. Today, he’s sharing more on what’s been going on this week. So, click down below to hear Eoin’s thoughts. Eoin's Insights Happy Friday Market Minute readers. Here’s another short clip of my weekly series where I talk about what’s happening in the markets. Join me today as I talk about what the Fed is doing, the dollar, and a potential answer to where the next round of stimulus will come from. Just click below to watch. Reader Mailbag Do you agree with Jeff’s prediction that the jobs report will cause a move lower, or do you think it could move in another direction? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. In Case You Missed It… [The “5G Master Key” Could Create Lots of Wealth in 2021]( Every wireless rollout – from 2G to 4G – had a “Master Key” to unlock it for everyday use. These “Master Keys” could’ve made individuals rich over the long term. [While there are no guarantees in the market, one analyst believes the 5G Master Key could return substantial gains.]( One tiny company is about to rollout the “5G Master Key.” It could be the #1 tech stock of 2021. [Click here for details on ticker.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [image]( [The Ultimate Guide to Taking Back Your Privacy]( [image]( [America’s #1 Portfolio Protection Plan]( [image]( [An Insider’s Guide to Making a Fortune from Small Tech Stocks]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. 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