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Last week, I showed you we're heading into a seasonally weaker period for the market. Data from the past 20 years shows the market posting below-average returns during August.
And the rest of the year isn't much better. Add in your geopolitical headwind of choice – Russia, NATO, Brexit, tariffs, North Korea, anything – and you've got what could be a perfect bearish storm.
One of the factors the bears like to throw around is the low level of the CBOE Volatility Index (VIX), a measure of overall market fear.
It's the key to playing this situation.
About the Author
Chris Johnson is a quant - he's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.
Chris also contributes to Money Morning as the Quant Analysis Specialist.