To say the trend is up, would be a complete understatement:
- MarketWatch – Trump’s stock-market rally threatens to annihilate bears
- Fox Business Video – How far can the market rally go?
I have nothing to add – this rally has me totally flummoxed. Let’s look at the numbers – 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 | 3 | 3 |
| SPX | S&P 500 INDEX | 3 | 3 |
| RUT | RUSSELL 2000 INDEX | 3 | 3 |
| NDX | NASDAQ-100 INDEX INDEX | 3 | 3 |
| VIX | CBOE MARKET VOLATILITY INDEX | 2 | 2 |
| /ZB[H7] | 30-Year U.S. Treasury Bond Futures,ETH | -3 | -3 |
| /ZN[H7] | 10-Year U.S. Treasury Note Futures,ETH | -3 | -3 |
| /GC[J7] | Gold Futures, ETH | 3 | 3 |
| /CL[H7] | Light Sweet Crude Oil Futures,ETH | 3 | 3 |
| /DX[H7] | US Dollar Index Futures | -2 | -2 |
| $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 | -3 |
| XLP | SELECT SECTOR SPDR TRUST CONSUMER STAPLES INDEX | 3 | 3 |
| XLV | SELECT SECTOR SPDR TRUST HEALTH CARE SELECT INDEX | 3 | 3 |
| XLU | SELECT SECTOR SPDR TRUST UTILITIES SELECT INDEX | 3 | 3 |
| 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.
In Equities – only Energy is down, everything else is working – this seems strange to me, because Oil as a commodity is doing well. Bonds are down, Bond yields are up – and Gold is Rallying!
Extra – Boomers are broke:
- MarketWatch – Boomers Struggle With Rising Debt, Dwindling Savings
Extra, Extra – this is the most amazing press conference I have ever seen:
https://www.youtube.com/watch?v=lPAo_J8gotQ
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