I am trying to stay positive about the possibility that Trump might do some of the things he promised – but it is getting harder when I read stuff like this:
- Bloomberg – Trump’s K Street Office Is Open for Business
- USA Today – Trump’s Treasury nominee Steven Mnuchin faces criticism about foreclosures
- The Atlantic – Donald Trump’s Conflicts of Interest: A Crib Sheet – The Atlantic
- Washington Post – HHS nominee pressed hard on health policy positions, financial dealings & Rick Perry seeks to lead Energy, an agency he pledged to abolish
He said he would Drain the Swamp – but his Cabinet Picks and K Street Office would suggest he has other plans. I mean Rick Perry? as Energy Secretary? Really?
We need to hope for the best – if Trump fails, we all fail – but I am hedging my investments based on low expectations.
Listed below are this week’s trend numbers for the Markets I track:
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 | -2 | 1 |
| SPX | S&P 500 INDEX | 3 | 3 |
| RUT | RUSSELL 2000 INDEX | -2 | 1 |
| NDX | NASDAQ-100 INDEX INDEX | 3 | 3 |
| VIX | CBOE MARKET VOLATILITY INDEX | 2 | -1 |
| /ZB[H7] | 30-Year U.S. Treasury Bond Futures,ETH | -2 | -3 |
| /ZN[H7] | 10-Year U.S. Treasury Note Futures,ETH | -2 | -3 |
| /GC[G7] | Gold Futures, ETH | 3 | 2 |
| /CL[H7] | Light Sweet Crude Oil Futures,ETH | 1 | 3 |
| /DX[H7] | US Dollar Index Futures | -1 | 1 |
| $DJT | Dow Jones Transportation Average | 3 | 3 |
| XLK | SELECT SECTOR SPDR TRUST TECHNOLOGY SELECT INDEX | 3 | 3 |
| XLI | SELECT SECTOR SPDR TRUST INDUSTRIAL SELECT INDEX | 3 | 3 |
| XLY | SELECT SECTOR SPDR TRUST CONSUMER DIS SELECT INDEX | 3 | 3 |
| XLB | SELECT SECTOR SPDR TRUST MATERIALS SELECT SEC INDEX | 3 | 3 |
| XLE | SELECT SECTOR SPDR TRUST ENERGY SELECT INDEX | -3 | 1 |
| XLP | SELECT SECTOR SPDR TRUST CONSUMER STAPLES INDEX | 3 | 2 |
| XLV | SELECT SECTOR SPDR TRUST HEALTH CARE SELECT INDEX | 1 | 3 |
| XLU | SELECT SECTOR SPDR TRUST UTILITIES SELECT INDEX | 3 | 3 |
| XLF | SELECT SECTOR SPDR TRUST FINANCIAL SELECT SECTOR FUND | -2 | 1 |
Any market showing a 3 or a -3 is trending strongly – and should be factored into any options strategy you are contemplating.
S&P 500 and Nasdaq are still rocking along – but the DJIA and Russell 2000 (small caps) are stalling out. Bonds are still down, but the bleeding is starting to slow – and Gold is getting a short-term pop. Most Equity Sectors are up – and even Healthcare is hanging in there, which is surprising given Trump’s Pharma Tweet Storms.
Energy looks like it is rolling over – will keep an eye on Oil prices.
Extra – Hollywood is not happy about tomorrows Inauguration:
- Politico – How Trump Left Hollywood in the Cold…
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