How We Can Use the VIX to Dodge a Losing Trade

Whenever you’re trading a short-term position against a longer-term trend, you must know where the exit is… [Jeff Clark's Market Minute]( How We Can Use the VIX to Dodge a Losing Trade By Jeff Clark, editor, Market Minute Keep an eye on the exits… Whenever you’re trading a short-term position against a longer-term trend, you must know where the exit is. Otherwise, you can get trapped in a losing trade. [Last Friday]( I made the case that even though the intermediate- and longer-term trends for the stock market are lower, the VIX buy signal would likely generate a short-term rally. So far, that rally is playing out. Friday’s 64-point gain in the S&P 500 set the index well on its way to our 4100 price target. Recommended Link [Why do 5 billionaires think this strange liquid can rival what Elon Musk is building at Tesla…]( [image]( And send the stock price of one tiny company soaring? It all circles back to a $130 trillion energy transition away from fossil fuels like coal, oil, and gas… To renewable sources like hydro, geothermal, solar, and wind power. But there’s one problem… Renewables can’t deliver energy on demand. And that’s the real reason why 5 of the world’s richest men are betting against Elon Musk and Tesla… And investing in one tiny company behind “Liquid Energy.” [Click here to learn more.]( -- But that rally in the stock market has also pushed the Volatility Index (VIX) down towards its lower Bollinger Band. In other words, the VIX is getting dangerously close to generating a broad stock market sell signal. Take a look at the chart… [(Click here to expand image)]( VIX sell signals are generated when the index closes below its lower Bollinger Band (BB) and then closes back inside the bands (solid blue lines). We’re not there yet… 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. The VIX hasn’t closed below its lower BB. So, the earliest we could get a VIX sell signal is Thursday. The stock market can certainly work higher between now and then. But traders need to keep an eye on the exits. It was the action in the VIX that prompted us to bet on a short-term rally, so the VIX will also tell us when it’s time to head for the exits. [Finally, gain financial freedom in 2023 using this method]( If the current buy signal plays out like the three VIX buy signals last year (blue arrows), then the S&P 500 could make it up to 4100 – or even higher within the next few days. But that’s not guaranteed. If the VIX closes below its lower BB, then this rally could end abruptly. And with the intermediate- and longer-term trends still bearish, traders will be better off leaving the party a little early rather than sticking around too long. Best regards and good trading, [signature] Jeff Clark Reader Mailbag What other technical indicators do you use to decipher sell signals? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. In Case You Missed It… [[MUST SEE]: Instant cash in 3 seconds?! Challenge accepted 👀]( My name is Jeff Clark... And I’ve got a challenge should you choose to accept it: Take away my wallet, cash, and all credit cards... Send me to any store or restaurant in America... And in 3 seconds I’ll buy anything I want – using none of my own money. [Click here to watch how I do it.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [The Ultimate Guide to Taking Back Your Privacy]( [THE 101 GUIDE TO PRE-IPO INVESTING]( [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. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2023 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](