Reality has hit the Oil Market this week:
- MarketWatch – Oil breaks below $49 a barrel for first time this year with sudden selloff
- Bloomberg – Shale Industry Binge Can ‘Kill’ the Oil Market, Billionaire Hamm Says
- ZeroHedge – Energy Credit Risk Soars As Crude Carnage Continues
Energy is a sector I am avoiding (along with Retail). There is a difference between cheap – and cheap for a reason.
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 | 1 | 3 |
| SPX | S&P 500 INDEX | 1 | 3 |
| RUT | RUSSELL 2000 INDEX | -3 | -2 |
| NDX | NASDAQ-100 INDEX INDEX | 3 | 3 |
| VIX | CBOE MARKET VOLATILITY INDEX | 3 | -1 |
| /ZB[M7] | 30-Year U.S. Treasury Bond Futures,ETH | -3 | -3 |
| /ZN[M7] | 10-Year U.S. Treasury Note Futures,ETH | -3 | -3 |
| /GC[J7] | Gold Futures, ETH | -3 | -2 |
| /CL[J7] | Light Sweet Crude Oil Futures,ETH | -3 | -2 |
| /DX[H7] | US Dollar Index Futures | 3 | 3 |
| $DJT | Dow Jones Transportation Average | -3 | 1 |
| XLK | SELECT SECTOR SPDR TRUST TECHNOLOGY SELECT INDEX | 3 | 3 |
| XLI | SELECT SECTOR SPDR TRUST INDUSTRIAL SELECT INDEX | 1 | 3 |
| XLY | SELECT SECTOR SPDR TRUST CONSUMER DIS SELECT INDEX | 3 | 3 |
| XLB | SELECT SECTOR SPDR TRUST MATERIALS SELECT SEC INDEX | -2 | 1 |
| XLE | SELECT SECTOR SPDR TRUST ENERGY SELECT INDEX | -3 | -3 |
| XLP | SELECT SECTOR SPDR TRUST CONSUMER STAPLES INDEX | 1 | 3 |
| XLV | SELECT SECTOR SPDR TRUST HEALTH CARE SELECT INDEX | 3 | 3 |
| XLU | SELECT SECTOR SPDR TRUST UTILITIES SELECT INDEX | 1 | 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.
Small Caps and the Energy Sector are rolling over – will be interesting to see if Trump can continue to tweet the market higher, or if fundamentals finally kick in.
Extra – This is just fun to watch:
- Bloomberg – Crashing Drones Into Test Dummies for Safety
Leave a Reply