By Jeff Clark, editor, Market Minute It’s time to take another look into the stock market’s crystal ball… One month ago, we noted that Volatility Index (VIX) call options were significantly more expensive than the equivalent put options . This condition often leads to a sharp rally in the VIX, which usually goes along with a sharp fall in the stock market. Lopsided conditions in VIX options have been so accurate in projecting future stock market action, that I often refer to it as the market’s “crystal ball.” And once again, the crystal ball’s forecast has proven correct. | Recommended Link | | Tech insider Jeff Brown's urgent must-see warning – expires tonight at midnight – watch immediately… "If you think the 5G investment story is over, you're making a huge mistake…" It's probably the most profitable money-making opportunity in the stock market today. Industry experts agree this technology is set to soar 30,000% – enough to turn a $500 investment into an extraordinary $150,000. Silicon Valley insider Jeff Brown calls it "the #1 tech investment of this decade." And he says it's 5X bigger than he initially projected. He guarantees it could show you the chance to double your money at least five times over the next 12 months. And in this free limited-time presentation, he reveals how you can build a million-dollar portfolio around this one idea, from scratch, in today's market – and he'll give you the name of his #1 stock for free. | | | -- | The S&P 500 was trading near 3500 one month ago. And the VIX was near 26. On Wednesday, the S&P 500 closed at 3271. The VIX closed above 40. VIX option prices are now, however, quite a bit different than where they were a month ago. In fact, the crystal ball now says the stock market is most likely going to be higher in the weeks ahead. 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. | Let me explain… On Wednesday, when the VIX closed at 40.28, the VIX November 4 $40 call options – which expire next Wednesday – closed at $3.30. The VIX November 4 $40 put options closed at $5.60. In other words, traders were willing to pay 70% more for a VIX put option than the equivalent VIX call option. That tells us that traders making bets on the VIX expect the index to move lower over the next few days. And, a falling VIX often goes along with a rising stock market. [URGENT] Special Warning to President Trump If we go out a few weeks, the price difference is even greater… The VIX November 18 $40 calls closed Wednesday at $4.80. The equivalent put options closed at $9. The puts that expire in a little less than three weeks are nearly twice the price of the calls. So, the crystal ball sees the stock market trading higher in a few weeks than where it is today. And, given the accuracy of this indicator, traders should probably take advantage of the recent weakness in the stock market... and buy this dip. Best regards and good trading, 
Jeff Clark P.S. Nowadays, 80% of stock trading is done by machines on Wall Street – and, if you don’t know how they work, then you can easily lose money. Luckily, I’ve found a new strategy that helps me discover the exact moment these machines are most likely to buy and sell these “pre-programmed” stocks. If you’re tired of losing money to computers, just click here to learn more about my flagship options service, the Delta Report. There, I’ll show you the techniques I use to identify these stocks… and how you could make a fortune by beating them at their own game. Reader Mailbag In today’s mailbag, a few subscribers share their thoughts on Monday’s Market Minute about commodities inflation... Jeff, if left to their own devices, the American farmers could feed the world, or at least half of it. My father and his brothers lived through the Great Depression of the 1930s. Thankfully, they were farmers, and they ate well. However, when FDR sent out his teams to slaughter the farm animals and burn the crops, they lost a lot of their revenue-producing assets, and the labor they had spent acquiring them. The excuse used by the government was "overproduction.” It was actually nothing more than an “experiment in control.” The result was long food lines in the cities. But the farmers simply went back to business as usual. This time around, the population is too well informed with our instantaneous communications, so those that produce food commodities could only be restricted to the point where the demand outstripped the supply. And now, prices have risen dramatically. Will they go back down? Of course, they will – just as soon as this idiotic experiment in control is abandoned and the production of commodities are once again "permitted.” One other thing that restricts the experiment in control of production of commodities is that most of the farms in America are corporate-owned and ran. Restriction of them would have an effect on the markets and Wall Street. The fat cats must be fed. – Ernest Food prices, and all commodities, will go up. Gold, silver, and everything you buy are going to cost more with the printing of “funny money.” – Owen I’m old enough to remember our last bout of galloping inflation. The statistics I’ve read say real inflation is 9% at the moment. It’ll be double that within six months, and maybe more depending on the election results. – Florence Jeff, I just read your thoughts on commodity prices and riots in Market Minute. You are right on. I'm not rioting anytime soon, since moving this fat body is way too tiring. Thanks for your perspective. – Eric Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming – and send us any questions – at feedback@jeffclarktrader.com. In Case You Missed It… Will Biden Be Bad for Stocks? See Stunning Prediction Here… If national polls can be believed, Joe Biden will become the next U.S. President. Will Biden be bad for stocks? While controversial, the firm that called the EXACT PEAK of the dot-com boom just issued another major prediction… One that will accelerate should Biden win come November. If you've got money invested in the market – and especially in popular tech stocks – this is CRITICAL information you need to see ahead of the coming election. Watch the Video. | 
No comments:
Post a Comment