We actually had some real fear in the Market yesterday – and it is showing up in the trends. 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 | -2 | -2 |
| SPX | S&P 500 INDEX | -2 | -2 |
| RUT | RUSSELL 2000 INDEX | -3 | -2 |
| NDX | NASDAQ-100 INDEX INDEX | -2 | 1 |
| VIX | CBOE MARKET VOLATILITY INDEX | 3 | 2 |
| /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[M7] | Gold Futures, ETH | 2 | 3 |
| /CL[N7] | Light Sweet Crude Oil Futures,ETH | 2 | -1 |
| /DX[M7] | US Dollar Index Futures | -3 | -3 |
| $DJT | Dow Jones Transportation Average | -3 | -3 |
| XLK | SELECT SECTOR SPDR TRUST TECHNOLOGY SELECT INDEX | -2 | 1 |
| XLI | SELECT SECTOR SPDR TRUST INDUSTRIAL SELECT INDEX | -2 | -2 |
| XLY | SELECT SECTOR SPDR TRUST CONSUMER DIS SELECT INDEX | -2 | -2 |
| XLB | SELECT SECTOR SPDR TRUST MATERIALS SELECT SEC INDEX | -3 | -2 |
| XLE | SELECT SECTOR SPDR TRUST ENERGY SELECT INDEX | -3 | -3 |
| XLP | SELECT SECTOR SPDR TRUST CONSUMER STAPLES INDEX | -2 | 1 |
| XLV | SELECT SECTOR SPDR TRUST HEALTH CARE SELECT INDEX | -2 | -2 |
| XLU | SELECT SECTOR SPDR TRUST UTILITIES SELECT INDEX | 3 | 3 |
| XLF | SELECT SECTOR SPDR TRUST FINANCIAL SELECT SECTOR FUND | -3 | -3 |
| XLRE | SELECT SECTOR SPDR TRUST REAL ESTATE SLCT SEC SPDR ETF | -1 | -2 |
Any market showing a 3 or a -3 is trending strongly – and should be factored into any options strategy you are contemplating.
Everything that went up during the Trump Bump – is now going back down. Days like yesterday are the reason why you should always hold some bonds in your portfolio.
Will this volatility make my current put spread profitable? Time will tell – it is currently worth $98.00 once you back out my initial $300.00 premium payment – so I am not rich yet.
Extra – This can’t be a good thing:
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