Correction Next Week — If Dow Breaks This Number: Strategist

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, jumped on Friday. What does the rise mean for the markets going forward? Brent Wilsey, president of Wilsey Asset Management, and Alan Valdes, vice president of Kabrik Trading, shared their best investment ideas.



“We’ve had a major run-up, it’s about time to have some pullback,” Wilsey told CNBC.


“But I love this volatility because we sold some companies in December when they were higher, now we’re seeing things come down a little bit.”

Wilsey said he hopes for a buying opportunity based on volatility levels.

"We’re hoping that [volatility] comes down some more because I have three companies that I’ve been waiting to buy for the past six weeks and I’m hoping for today or next week to buy them," he said. "So volatility is good.”

In the meantime, Valdes said if the Dow closes below 10,340 today, then investors should expect to see a correction next week.

“I think this is a buying opportunity,” he said. “I like the utilities.”