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Ace Investment Strategists Chief Trader Yu-Dee Chang on why the VIX is the key indicator to follow to know when to invest in stocks.
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We've got a money manager right now that says there is one key indicator you need to watch.
That'll tell you when it's time to buy and when it's time to sell.
Not only tell you the indicator but the exact price point for that indicator -- -- is chief trader at -- investment strategies.
And unity let's get right to -- we're talking about the -- and you have a particular number at which point you would say it's time to buy stocks what is that price point for the -- yeah.
I think for now basically -- if you look at the -- It ready -- -- ranges because there's really no absolutely -- what capsule low however.
Recently even look at the range has been maybe 25 to the downside with 38.
To the outside salt if you look at -- and -- is rated on the charts are mirror image off the market itself so when that.
-- so called volatility with a fears that highest point.
Usually the market makes the bottom so wouldn't -- reaches about the 38.
Numbered these states over the short term basis it's actually a -- in the overall mark.
OK -- -- -- tossed out a little bit too quickly how this really works when the Vicks is extraordinarily high that means the fear is the highest.
And that's when it becomes a buy signal because.
All the -- cats are out of the market and this is the time to -- opposite goes for when the -- is very low and there's complacency and everybody's all excited anything could happen but let's talk about that number 38.
Last time we saw was in early August when the US got its debt downgraded.
Do we have to see something horrific like that again for it to -- and scratch its way up to 3039.
Problem.
Wait but don't forget sometimes side does -- decline now slowly it may be won the event that triggers it.
Most likely news out -- Europe I think these days the market -- as you know.
Fundamentals pretty much goes out -- window over the short term basis.
Technical goes out the windows as well it's basically all so call news had -- Driven so back to -- -- so called trigger.
To take that -- -- market volatility up to that 38 level by the way.
We're only thought well already at about thirty to 33 we're not that far away from that 38 -- so it's close to abide.
-- by the way let's switch to commodities for a second because you think the bull run in commodities may be just about over right.
Yeah -- -- different cap off on commodities I'm not a believer that hate commodity is the place to be in the bull market I do believe though there are tremendous opportunities in the commodities markets just like the stock market where's specifically nudity well possibly I'm talking about oil market may be somewhere around the -- 87 dollars to look for -- and maybe around a 110 dollars for -- I'm talking about prices battle specifically the gold.
Somewhere around -- 167.
The level to be a buy signal or somewhere around 1850 to be sold I believe.
Risk all the -- off Greece -- Greece saw people are very -- news these days so.
We are very emotional these days what won't do but because we're looking for the -- with a risk trade on the other hand.
We're scare computers at all times so -- know -- about being selling.
By the depth and cellulose easier said than done but that's the way to make money in the markets these days -- -- -- -- thank you so much for joining.
