The VIX is Reaching the Danger Zone

Life’s been great lately for stock market investors. [Jeff Clark's Market Minute]( The VIX is Reaching the Danger Zone By Imre Gams, analyst, Market Minute Life’s been great lately for stock market investors. Since October 27, all the major stock market averages have moved sharply higher. The Dow Jones Industrial Average has rallied nearly 6%. The S&P 500 has gained over 7.6%. And the Nasdaq has been up nearly 11%. And while we will get further upside, this mini melt-up has to take a breather first. My colleague Brad Hoppmann is one of the best technical analysts I know. He uses a method called predictive analytics to forecast market moves. Brad’s [recently cautioned readers]( about chasing stocks higher in the short term. My own analysis agrees with him. Recommended Link [Market Wizard who made $95 million for his clients in 2008 – and predicted the 2022 collapse – reveals his strategy:]( [image]( The One-Ticker Retirement Plan How to make all the money you need – in any market – using a single stock. [Click here for the name of the ticker…]( -- Today we’ll be taking a closer look at the Volatility Index (VIX). The VIX – as you might already know – is the market’s expectation of 30-day volatility. Put simply, when the VIX is trading at elevated levels, the market is expecting a lot of volatility. On the other hand, when the VIX is trading lower, the market is getting complacent. The VIX peaked on October 23. It’s been trending lower ever since. Of course, that makes sense. It’s exactly what we want to see when the markets are rising. But right now, the VIX is starting to fall into dangerous territory. Take a look… [(Click here to expand image)]( There’s a value range in the VIX from about 11 to 13.50 that has historically resulted in some fierce market selloffs. I refer to this as the “danger zone.” As a point of reference, the VIX is currently trading at around 14.20. Not too far away from the danger zone. The last time the VIX fell into this danger zone was on September 14. That coincided with the Nasdaq and the S&P 500 both selling off for over 9%. And the time before that was on July 27. That marked a quick sell-off in the S&P 500 of 5.9% in just 17 days. 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. You can see just how consistent this zone has been over the last several years. Nearly every time the VIX has hit the danger zone (red arrows), we saw a spike in volatility and a drop in the market. We’re rapidly approaching the zone now. So, it’s time to be cautious with the stock market right now. If you’ve gotten into a handful of great trades over the last couple of weeks, then it’s time to consider taking profits. At the very least, using a trailing stop loss is likely a very good idea. And if you’ve still got some cash you’re waiting to put to work, it’s better to wait for the next pullback. It’s likely going to be a great buying opportunity for the next run higher. Happy trading, [Signature] Imre Gams READER MAILBAG Are you taking profits on any positions? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. IN CASE YOU MISSED IT… [Historic Collapse Coming This Month?]( If you hold any U.S. dollars, please take a moment and [click here to see this “final collapse” warning.]( Thanks to what could be a new World War, millions of unprepared Americans could be wiped out. [Click here and learn how to prepare]( because, by the end of this month, it could be too late. [PREPARE NOW.]( [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](