Market futures are higher – reacting to the Bank of England cutting rates to near zero and implementing more QE – buying corporate bonds, etc….
Seems like a desperate move to me – and I am not sure how lower interest rates offset the imminent Brexit recession. But the market has been conditioned to rise whenever a Central Bank anywhere in the World injects heroin into the global system. I don’t expect the move to last long – suspect it is just a sugar rush.
How have the Markets done over the last week? Let’s take a look:
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 | 3 |
| NDX | NASDAQ-100 INDEX INDEX | 3 | 3 |
| VIX | CBOE MARKET VOLATILITY INDEX | -3 | -3 |
| /ZB[U6] | 30-Year U.S. Treasury Bond Futures,ETH | 3 | 3 |
| /ZN[U6] | 10-Year U.S. Treasury Note Futures,ETH | 3 | 3 |
| /GC[Z6] | Gold Futures, ETH | 3 | 3 |
| /CL[U6] | Light Sweet Crude Oil Futures,ETH | -3 | -3 |
| /DX[U6] | US Dollar Index Futures | -3 | -2 |
| $DJT | Dow Jones Transportation Average | -3 | -2 |
| XLK | SELECT SECTOR SPDR TRUST TECHNOLOGY SELECT INDEX | 3 | 3 |
| XLI | SELECT SECTOR SPDR TRUST INDUSTRIAL SELECT INDEX | 0 | 3 |
| XLY | SELECT SECTOR SPDR TRUST CONSUMER DIS SELECT INDEX | -2 | 1 |
| XLB | SELECT SECTOR SPDR TRUST MATERIALS SELECT SEC INDEX | 1 | 3 |
| XLE | SELECT SECTOR SPDR TRUST ENERGY SELECT INDEX | -1 | 1 |
| XLP | SELECT SECTOR SPDR TRUST CONSUMER STAPLES INDEX | -3 | 1 |
| XLV | SELECT SECTOR SPDR TRUST HEALTH CARE SELECT INDEX | 3 | 3 |
| XLU | SELECT SECTOR SPDR TRUST UTILITIES SELECT INDEX | -2 | 1 |
| 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.
Oil has been getting crushed and the Transports have totally rolled over. These moves usually signify a slowdown – most stocks and bonds are still levitating near their all-time highs – but for how long?
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