The Markets are down again today – and most of the blame if going to the FED:
- ZeroHedge – Fed’s Lacker Unleashes More Hawks: “Markets Took Wrong Signal From Fed In March And April”
I have no idea why a .25 percent rise in rates would be so troublesome – could it be that the market is priced for perfection?
Anyway, even though it is early – let’s take a look at the markets:
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 | -3 | -2 |
| SPX | S&P 500 INDEX | -3 | -2 |
| RUT | RUSSELL 2000 INDEX | -3 | -2 |
| NDX | NASDAQ-100 INDEX INDEX | -3 | -3 |
| VIX | CBOE MARKET VOLATILITY INDEX | 3 | 2 |
| /ZB[M6] | 30-Year U.S. Treasury Bond Futures,ETH | 3 | 3 |
| /ZN[M6] | 10-Year U.S. Treasury Note Futures,ETH | 2 | 3 |
| /GC[M6] | Gold Futures, ETH | -2 | 1 |
| /CL[N6] | Light Sweet Crude Oil Futures,ETH | 3 | 3 |
| /DX[M6] | US Dollar Index Futures | 3 | 2 |
| $DJT | Dow Jones Transportation Average | -3 | -2 |
| XLK | SELECT SECTOR SPDR TRUST TECHNOLOGY SELECT INDEX | -3 | -3 |
| XLI | SELECT SECTOR SPDR TRUST INDUSTRIAL SELECT INDEX | -3 | -2 |
| XLY | SELECT SECTOR SPDR TRUST CONSUMER DIS SELECT INDEX | -3 | -2 |
| XLB | SELECT SECTOR SPDR TRUST MATERIALS SELECT SEC INDEX | -3 | 1 |
| XLE | SELECT SECTOR SPDR TRUST ENERGY SELECT INDEX | -2 | 1 |
| XLP | SELECT SECTOR SPDR TRUST CONSUMER STAPLES INDEX | -3 | -2 |
| XLV | SELECT SECTOR SPDR TRUST HEALTH CARE SELECT INDEX | -3 | -2 |
| XLU | SELECT SECTOR SPDR TRUST UTILITIES SELECT INDEX | -3 | -2 |
| XLF | SELECT SECTOR SPDR TRUST FINANCIAL SELECT SECTOR FUND | -3 | 1 |
Any market showing a 3 or a -3 is trending strongly – and should be factored into any options strategy you are contemplating.
The Dollar, Oil, and Bonds are strong – with everything else rolling over. It will be interesting to see if the FED chickens out again during the June meeting, taking another pass on raising rates based on the market’s reaction.
Leave a Reply