I was watching CNBC this morning in the Gym when the following was reported about US auto loans:
- Average auto loan: $30,032 — the first time the amount borrowed to buy a new vehicle has topped $30,000.
- Average monthly payment: $503 — the first time the average auto payment has gone over the $500 mark.
- Average term for an auto loan: 68 months — this is the longest average term ever seen by Experian.
This just blew me away – are people crazy! Stop trying to “keep up with the Joneses” – don’t you see this is not going to end well?
I can’t stand it! Anyway, 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 | 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 | -1 |
| /ZB[U6] | 30-Year U.S. Treasury Bond Futures,ETH | 2 | 3 |
| /ZN[U6] | 10-Year U.S. Treasury Note Futures,ETH | 2 | 2 |
| /GC[Q6] | Gold Futures, ETH | -3 | -2 |
| /CL[N6] | Light Sweet Crude Oil Futures,ETH | 1 | 3 |
| /DX[M6] | US Dollar Index Futures | 1 | 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.
Stocks are about as bullish as I have ever seen – solid green across every single sector of the equity markets, and very close to all-time highs. With the stronger dollar – Oil is starting to roll over and Gold is getting crushed – both after very big runs. Unfortunately, bonds are also very strong – so I do not see anywhere to put new money to work at these levels.
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