The market's 'fear gauge' may be saying now is the time to buy stocks

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The Cboe Volatility Index is trading at highs not seen since January, signaling rising worry in the stock market, but one options expert is making a brave bet based on the market's 'fear gauge.'

div > div.group > p:first-child"> The Cboe Volatility Index, which tracks the level of worry in the market and is commonly known as the VIX, spiked to its highest level since January on Thursday amid increasing concerns about U.S.-China trade negotiations.

"As people run to the exits, so to speak, and fear rises ... that typically has been a bull opportunity in the market," Stutland said Thursday on CNBC's "Options Action." "So not every reward comes with risk," Stutland said."We have definitely seen the market drop 9% after that spike happens. The market could roll over, but when I look at the technicals going on in the marketplace and the fundamentals, I think 2,815 or so on the S&P is a level I'd be willing to buy here."

Even if China holds out on cutting a trade deal with the U.S.,"you have the Fed put: traders expecting a rate cut later this year. So, certainly, that would fuel some fire back to the upside," Stutland said.

 

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Thank you Theresa May. Your 'making stuff done' abilities exceeded our expectations. We knew it's going to be bad. But you made it catastrophic for entire global economy.

Understanding basic economics isn't fear. FailedGOPTradeWars

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