Why I’m Not Trading the New Buy Signal Yet

The Volatility Index (VIX) generated a new buy signal after the market closed on Friday. [Jeff Clark's Market Minute]( Why I’m Not Trading the New Buy Signal Yet By Jeff Clark, editor, Market Minute The Volatility Index (VIX) generated a new buy signal after the market closed on Friday. But this is a low confidence buy signal. So, I’m not buying it… yet. Let me explain… Recommended Link [Prepare NOW for the Coming “Stock Shock”]( [image]( Over $13 trillion in household wealth has been wiped out… And stocks STILL cost DOUBLE what they did before the 2008 crash… But is the best solution really to just sit in cash? No. Over the last 4-decades, our firm has publicly predicted the fall of the Soviet Union… the Dot-Com collapse… the 2008 crash… Trump’s presidency… and the 2020, 2022, and 2023 crashes. Now, millionaire Jeff Clark is issuing a [new WARNING]( unlike anything we’ve seen in years. A [“Stock Shock” is coming to America]( that could be the worst OR BEST thing for your investments depending how you act BEFORE October 1st. Jeff’s also revealing the [ONE secret to getting ahead of this new shock]( and profiting in any market condition – closing huge gains in only 8 days. [Click Here to See Jeff’s New WARNING.]( -- VIX buy signals occur when the Volatility Index closes above its upper Bollinger Band (an extended condition which normally indicates extremely oversold conditions in the broad stock market), and then closes back inside the bands. The VIX closed above its upper Bollinger Band last Thursday. It closed back inside the bands on Friday, thereby generating the buy signal. Here’s the chart… [(Click here to expand image)]( But, there are two problems… The first problem is the S&P 500 blasted 75 points higher on the Friday. And, the VIX fell 14%. Much of the potential for a market rally has already occurred just generating a buy signal. Indeed, the VIX closed Friday closer to its lower Bollinger Band than to its upper band. The second problem is that most of the other technical indicators we follow aren’t all that oversold anymore. The McClellan Oscillators (NYMO and NAMO), for example, closed Friday in a relatively neutral condition. In other words, there’s not much energy left to fuel a sustainable rally from here. 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. That doesn’t mean the market can’t press a bit higher. It just means that this signal is not going to lead to the sort of strong, multi-week rally we saw from the [buy signal back in March](. Instead, any bounce we get from the current buy signal will likely burn out within a few days. Traders should consider passing on Friday’s VIX buy signal as well. But pay attention to the VIX chart in the days ahead. If the broad stock market pulls back, and the VIX rallies to set up another buy signal over the next two weeks or so, then that signal will likely prove to be a winner. Best regards and good trading, [Signature] Jeff Clark READER MAILBAG Is the VIX an indicator you use often in your trading? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. IN CASE YOU MISSED IT… Millionaire Investor Reveals: [“How I Made My Second Fortune… By Avoiding 99% of Stocks”]( Buy this small group of unique stocks… never sell them… and make all the money you need… No matter what happens in the market. [Revealed here: the name and ticker of the #1 stock.]( [image]( [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](