Adding on to my point about retail in yesterday’s post – Kohl’s reported earnings this morning:
- Business Insider – Kohl’s is getting smoked after missing on earnings across the board
Too much capacity – not enough demand. That seems to be the story in industry after industry. Don’t see it reflected in the stock market yet – let’s go to the table:
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 | 1 |
| SPX | S&P 500 INDEX | -3 | 1 |
| RUT | RUSSELL 2000 INDEX | -3 | 1 |
| NDX | NASDAQ-100 INDEX INDEX | -3 | -2 |
| VIX | CBOE MARKET VOLATILITY INDEX | -3 | -3 |
| /ZB[M6] | 30-Year U.S. Treasury Bond Futures,ETH | 3 | 3 |
| /ZN[M6] | 10-Year U.S. Treasury Note Futures,ETH | -2 | 1 |
| /GC[M6] | Gold Futures, ETH | 1 | 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 | -1 | -3 |
| XLI | SELECT SECTOR SPDR TRUST INDUSTRIAL SELECT INDEX | 1 | 3 |
| XLY | SELECT SECTOR SPDR TRUST CONSUMER DIS SELECT INDEX | -2 | 1 |
| XLB | SELECT SECTOR SPDR TRUST MATERIALS SELECT SEC INDEX | -2 | 1 |
| 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 | 1 |
| XLU | SELECT SECTOR SPDR TRUST UTILITIES SELECT INDEX | 3 | 3 |
| XLF | SELECT SECTOR SPDR TRUST FINANCIAL SELECT SECTOR FUND | 1 | 3 |
Any market showing a 3 or a -3 is trending strongly – and should be factored into any options strategy you are contemplating.
Oil is still surging – along with Utilities and Consumer Staples. The Transports are still down – and the overall market seems flat. The only ideas I am finding that are not value traps are in Health Care.
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