I think Trump is making a Rookie mistake taking credit for the stock market’s record high:
- Business Insider – Trump takes a victory lap on stock market’s record high in an early-morning tweet
- MarketWatch – Here’s all the times President Trump has taken credit for stock-market gains
It was just last year during the Election, that Trump was stating emphatically that the US Equity Market was in a bubble.
Need a bubble example – look at Snapchat’s IPO today:
- Bloomberg – Snap IPO Values Company at Twice Facebook’s Multiple
- ZeroHedge – Snap IPO Opens At $24 – Almost Three Times The Size Of Twitter
Or the current value of a Bitcoin:
Considering where the Market Valuations are right now (higher than anytime in US History except for the Dot.com bubble), not sure I would want to be promising more of the same:
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 | 3 | 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 | 1 | 3 |
| /CL[J7] | Light Sweet Crude Oil Futures,ETH | -2 | 1 |
| /DX[H7] | US Dollar Index Futures | 3 | 3 |
| $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 | 2 | -1 |
| 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.
Sound like a broken record – everything is working in Equity Land except the Energy Sector. Bonds are the only red on the board.
No matter how attractive it looks right now, do not short this market. You can’t know if it is 1998 or 2000 – so don’t even try.
Leave a Reply