The market seems to be stuck – reminds me of an episode of Bob the Builder the kids made me watch about 1000 times:
The Federal Reserve does not want to let the market fall and ruin all their asset inflation progress to date – but seems unwilling to go full retard into Helicopter Money – so we are stuck like Muck!
So where are the markets today? See the table below:
The following table is based on the Z Option Market Analysis Tool – which determines if a market is trending by assigning a trending score from -3 to +3. This helps us keep our trading with the trend.
| Symbol | Description | Short Term Trend | Medium Term Trend |
| $DJI | Dow Jones Industrial Average | 1 | 3 |
| SPX | S&P 500 INDEX | 1 | 3 |
| RUT | RUSSELL 2000 INDEX | 1 | 3 |
| NDX | NASDAQ-100 INDEX INDEX | -3 | -2 |
| VIX | CBOE MARKET VOLATILITY INDEX | 2 | -1 |
| /ZB[M6] | 30-Year U.S. Treasury Bond Futures,ETH | 2 | 3 |
| /ZN[M6] | 10-Year U.S. Treasury Note Futures,ETH | 2 | 3 |
| /GC[M6] | Gold Futures, ETH | 3 | 3 |
| /CL[M6] | Light Sweet Crude Oil Futures,ETH | 3 | 3 |
| /DX[M6] | US Dollar Index Futures | -3 | -3 |
| $DJT | Dow Jones Transportation Average | 1 | 3 |
| XLK | SELECT SECTOR SPDR TRUST TECHNOLOGY SELECT INDEX | -3 | -2 |
| XLI | SELECT SECTOR SPDR TRUST INDUSTRIAL SELECT INDEX | 3 | 3 |
| XLY | SELECT SECTOR SPDR TRUST CONSUMER DIS SELECT INDEX | -2 | 1 |
| XLB | SELECT SECTOR SPDR TRUST MATERIALS SELECT SEC INDEX | 3 | 3 |
| XLE | SELECT SECTOR SPDR TRUST ENERGY SELECT INDEX | 3 | 3 |
| XLP | SELECT SECTOR SPDR TRUST CONSUMER STAPLES INDEX | 0 | 1 |
| XLV | SELECT SECTOR SPDR TRUST HEALTH CARE SELECT INDEX | 1 | 3 |
| XLU | SELECT SECTOR SPDR TRUST UTILITIES SELECT INDEX | -1 | 1 |
| XLF | SELECT SECTOR SPDR TRUST FINANCIAL SELECT SECTOR FUND | 3 | 3 |
Any market showing a 3 or a -3 is trending strongly – and should be factored into any options strategy you are contemplating.
If you look at the Dollar and Oil – they are perfect mirror images – sometimes correlations make sense! Of course, when the Dollar gets back on its feet – Oil is going to suffer.
Leave a Reply