If you have any doubts we are in a market melt up – read the following:
Totally reasonable right?
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 | 3 | 3 |
| SPX | S&P 500 INDEX | 3 | 3 |
| RUT | RUSSELL 2000 INDEX | 2 | 3 |
| NDX | NASDAQ-100 INDEX INDEX | 3 | 3 |
| VIX | CBOE MARKET VOLATILITY INDEX | -3 | -3 |
| /ZB[M7] | 30-Year U.S. Treasury Bond Futures,ETH | 1 | 3 |
| /ZN[M7] | 10-Year U.S. Treasury Note Futures,ETH | 3 | 3 |
| /GC[M7] | Gold Futures, ETH | 3 | 3 |
| /CL[N7] | Light Sweet Crude Oil Futures,ETH | 1 | -1 |
| /DX[M7] | US Dollar Index Futures | -3 | -3 |
| $DJT | Dow Jones Transportation Average | 2 | -1 |
| 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 | 2 | 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 | 2 | -1 |
| XLRE | SELECT SECTOR SPDR TRUST REAL ESTATE SLCT SEC SPDR ETF | 3 | 3 |
Any market showing a 3 or a -3 is trending strongly – and should be factored into any options strategy you are contemplating.
Unless you are Short, overweight in Energy, Volatility, or the Dollar – everything is awesome. Equity markets are setting new highs every day!
But seriously, I am looking at putting on a bigger hedge if the Shiller PE goes over 30 – that would put us in Dot.com territory. We are at 29.60 today – the average is 16.75.
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