Volatility charts suggest that the time has come to buy stocks

After examining the charts of the Cboe volatility index – a market measure sometimes called "fear gauge" or even "VIX" -, volatility expert Mark Sebastian thinks the market could soon come out of its bearish phase.

This graph shows VIX skyrocketing at the first sale of 2018 in February, then stopping the second stage in March, noted Cramer. This pattern is repeated on a smaller scale in October and November.

"The October sale has blinded many people.The sale of these last two weeks has not aroused anyone.Even investors who thought we were ready to gather knew that there was a another possibility of a downturn, "explained Cramer. "When the VIX and the S & P begin to behave this way, Sebastian says it's almost always a sign that the stock market is actually trying to find a bottom."

By linking this to the action of the Cboe VIX Volatility Index – a derivative of the VIX that has plummeted in recent days – Sebastian has seen "an incredible sign" that a bottom could be close, announced the company. animator of "Mad Money".

When the VVIX is in free fall, it means that fund managers who leverage the VIX's own action think that volatility will go down, not increase, Sebastian said. This means that, in their view, the likelihood of dramatic market fluctuations is decreasing.

"Maybe the VIX is signaling that the Fed could be in stand-alone mode – a rate hike then wait and see – or that the president may have something positive while it Dinner with the Chinese president this weekend, "said Cramer. "Strange things have happened and if they happened, the bear could finally, finally, hibernate."

Shares ended the day up on the hope of a trade agreement reached between the United States and China at the G-20 summit this week. The VIX has slightly increased to reach a little over 19.