The reason I do this analysis each week – I feel it is important to step back regularly and look at the big picture. A lot of assumptions you are making, might not be true when you actually analyze the data.
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 | 3 | 3 |
| RUT | RUSSELL 2000 INDEX | 3 | 3 |
| NDX | NASDAQ-100 INDEX INDEX | 3 | 3 |
| VIX | CBOE MARKET VOLATILITY INDEX | -1 | -3 |
| /ZB[M7] | 30-Year U.S. Treasury Bond Futures,ETH | -3 | -2 |
| /ZN[M7] | 10-Year U.S. Treasury Note Futures,ETH | -3 | -2 |
| /GC[M7] | Gold Futures, ETH | -3 | -2 |
| /CL[M7] | Light Sweet Crude Oil Futures,ETH | -1 | -3 |
| /DX[M7] | US Dollar Index Futures | 2 | -1 |
| $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 | 1 | 3 |
| XLE | SELECT SECTOR SPDR TRUST ENERGY SELECT INDEX | -1 | -3 |
| XLP | SELECT SECTOR SPDR TRUST CONSUMER STAPLES INDEX | 1 | 3 |
| XLV | SELECT SECTOR SPDR TRUST HEALTH CARE SELECT INDEX | 1 | 3 |
| XLU | SELECT SECTOR SPDR TRUST UTILITIES SELECT INDEX | -3 | 1 |
| XLF | SELECT SECTOR SPDR TRUST FINANCIAL SELECT SECTOR FUND | 3 | 2 |
| XLRE | SELECT SECTOR SPDR TRUST REAL ESTATE SLCT SEC SPDR ETF | -3 | 1 |
Any market showing a 3 or a -3 is trending strongly – and should be factored into any options strategy you are contemplating.
Note: I have added the Real Estate SPDR ETF to the Sector Analysis.
Equity Markets are still near their all-time highs, but Bonds, Volatility, and Commodities are getting crushed. Also of interest – the Dow Transports are trending down hard – usually a bad sign for the overall Economy.
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