Don’t Chase Stocks Higher

The VIX is on the verge of a sell signal. [Jeff Clark's Market Minute]( Don’t Chase Stocks Higher By Jeff Clark, editor, Market Minute After generating a buy signal just a few days ago, the Volatility Index (VIX) is now on the verge of a sell signal. Unlike buy signals, which happen on average four or five times per year, VIX sell signals are rare. We only get about one each year. And, the length and severity of the sell signals are much different than the buy signals. VIX buy signals tend to play out with the broad stock market making an immediate, quick upside move – just like we’ve seen this week. Buy signals can play out in a matter of days. Recommended Link [Trump’s Victory: What It Means for the Markets and Why a U.S. Boom is on the Horizon]( [image]( I just recorded [a short video]( to answer the question on all of our minds: ‘Now that we know Donald Trump has won the presidency, what is going to happen in the markets?’ The bottom line is that I think we're going to have a boom in America finally. I have been saying for months that a Trump presidency means a [second boom is coming for AI stocks]( starting as soon as today. And have identified six specific AI stocks that are set to take off… [Click here]( to find out why I believe Donald Trump’s election will launch a second boom in AI stocks now.” –Louis Navellier [Click here now.]( -- VIX sell signals take longer to get started, and they tend to lead to intermediate-term declines. For example, [we wrote about the VIX sell signal]( that occurred back in March 2022. The stock market continued higher for about one week after the signal. But, once the selling started, it continued for several weeks. The S&P 500 was trading above 4600 in late March of 2022. Three months later it was near 3700. We don’t have a VIX sell signal yet. But, one could happen any day now. Here’s an updated chart of the VIX along with its Bollinger Bands… [chart] [(Click here to expand image)]( The VIX generates trading signals when it closes outside of its [Bollinger Bands]( (BB – solid blue lines), and then closes back inside the bands. The blue arrows on the chart point to all of the VIX buy signals so far this year. We don’t have any sell signals so far in 2024. Indeed, it has been nearly two years since the last one. 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. But, the VIX closed below its lower Bollinger Band on Wednesday. When it closes back inside the bands, the VIX will generate its first sell signal of 2024. And, if this one plays out like the sell signal from March 2022, the stock market could be in for a difficult holiday season. Given the strong track record of this indicator, investors should be careful not to chase stocks higher into any strength over the next few days. Best regards and good trading, [Signature] Jeff Clark [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). © 2024 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](