Funny, I thought this was a Beatles song?
https://www.youtube.com/watch?v=DohRa9lsx0Q
Anyway – the markets are stuck in the middle – and they are not going anywhere. They can’t seem to go much higher without better GDP growth and earnings – just too much Debt dragging things down. On the flip side – they can’t go down much, because the Federal Reserve freaks out and goes uber dovish – Janet Yellen may be the worst Federal Reserve Chairperson in history – so we are stuck. At least, until Donald Trump replaces her:
Only half joking – he could be President – very hard to believe.
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 | -2 | 1 |
| SPX | S&P 500 INDEX | -2 | 1 |
| RUT | RUSSELL 2000 INDEX | -2 | 1 |
| NDX | NASDAQ-100 INDEX INDEX | -3 | -2 |
| VIX | CBOE MARKET VOLATILITY INDEX | 3 | -1 |
| /ZB[M6] | 30-Year U.S. Treasury Bond Futures,ETH | 2 | 3 |
| /ZN[M6] | 10-Year U.S. Treasury Note Futures,ETH | 3 | 3 |
| /GC[M6] | Gold Futures, ETH | 3 | 3 |
| /CL[M6] | Light Sweet Crude Oil Futures,ETH | 3 | 3 |
| /DX[M6] | US Dollar Index Futures | -1 | -3 |
| $DJT | Dow Jones Transportation Average | -3 | -2 |
| XLK | SELECT SECTOR SPDR TRUST TECHNOLOGY SELECT INDEX | -3 | -2 |
| XLI | SELECT SECTOR SPDR TRUST INDUSTRIAL SELECT INDEX | -2 | 1 |
| XLY | SELECT SECTOR SPDR TRUST CONSUMER DIS SELECT INDEX | 1 | 3 |
| XLB | SELECT SECTOR SPDR TRUST MATERIALS SELECT SEC INDEX | -2 | 1 |
| XLE | SELECT SECTOR SPDR TRUST ENERGY SELECT INDEX | -2 | 1 |
| XLP | SELECT SECTOR SPDR TRUST CONSUMER STAPLES INDEX | 3 | 3 |
| XLV | SELECT SECTOR SPDR TRUST HEALTH CARE SELECT INDEX | -2 | 1 |
| XLU | SELECT SECTOR SPDR TRUST UTILITIES SELECT INDEX | 3 | 3 |
| XLF | SELECT SECTOR SPDR TRUST FINANCIAL SELECT SECTOR FUND | -2 | 1 |
Any market showing a 3 or a -3 is trending strongly – and should be factored into any options strategy you are contemplating.
Bonds, Gold, & Oil are surging – all plays on a weaker dollar. The Transports rolling over should worry equity bulls – still a good time to have some dry powder in cash.
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