I have written many posts regarding negative interest rates – and how they only make sense if governments outlaw cash. As you can see by many of these headlines – the war on cash continues:
- ZeroHedge – War On Cash Intensifies: Citibank To Stop Accepting Cash At Some Branches
- Bloomberg – The Strange Consequences of India’s Banknote Ban
- Quartz – China’s central bank is hiring blockchain experts to help it kill off cash
Something to keep an eye on – I am not a conspiracy follower, but I do believe Global Central Banks are preparing for the next crisis by clearing a path for negative interest rates.
The Markets have stalled a little after the week-long post-election pop – here are the numbers:
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 | 3 | 3 |
| NDX | NASDAQ-100 INDEX INDEX | 2 | 2 |
| VIX | CBOE MARKET VOLATILITY INDEX | -3 | -2 |
| /ZB[Z6] | 30-Year U.S. Treasury Bond Futures,ETH | 2 | 2 |
| /ZN[Z6] | 10-Year U.S. Treasury Note Futures,ETH | 2 | 2 |
| /GC[Z6] | Gold Futures, ETH | -3 | -3 |
| /CL[F7] | Light Sweet Crude Oil Futures,ETH | 2 | 2 |
| /DX[Z6] | US Dollar Index Futures | 3 | 3 |
| $DJT | Dow Jones Transportation Average | 3 | 3 |
| XLK | SELECT SECTOR SPDR TRUST TECHNOLOGY SELECT INDEX | 2 | 3 |
| XLI | SELECT SECTOR SPDR TRUST INDUSTRIAL SELECT INDEX | 3 | 3 |
| XLY | SELECT SECTOR SPDR TRUST CONSUMER DIS SELECT INDEX | 3 | 2 |
| XLB | SELECT SECTOR SPDR TRUST MATERIALS SELECT SEC INDEX | 3 | 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 | -1 |
| XLU | SELECT SECTOR SPDR TRUST UTILITIES SELECT INDEX | -3 | -3 |
| 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.
Everything is bullish right now except Gold and Bond replacement equity sectors such as Utilities.
Extra – Morningstar has a list of Consumer Stocks you should consider for your portfolio:
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