I made a trade in Pfizer today – just too cheap to ignore. Will publish the details tomorrow.
If you follow this blog – you know I am a fan of the book (and movie) the Big Short by Michael Lewis:
[AMAZONPRODUCTS asin=”B003LSTK8G”]
I have been wondering where the next big short will come from – could it be bad car loans?
Would not surprise me – given the ethics (or lack of ethics) associated with most Car Salesman/Dealerships. Too hard for the average investor to short something like this – but it would be interesting to know who is holding these loans and how leveraged they are – history does not repeat, but it certainly rhymes.
The current trend is down across the board and Financials are getting crushed. Gold, Bonds, Volatility, and Utilities are in the green – risk off.
The following chart 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 | -3 | -3 |
| VIX | CBOE MARKET VOLATILITY INDEX | 3 | 3 |
| /ZB[H6] | 30-Year U.S. Treasury Bond Futures,ETH | 3 | 3 |
| /ZN[H6] | 10-Year U.S. Treasury Note Futures,ETH | 3 | 3 |
| /GC[J6] | Gold Futures, ETH | 3 | 3 |
| /CL[H6] | Light Sweet Crude Oil Futures,ETH | -3 | -3 |
| /DX[H6] | US Dollar Index Futures | -3 | -3 |
| $DJT | Dow Jones Transportation Average | -3 | -3 |
| 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 | -3 | -3 |
| XLE | SELECT SECTOR SPDR TRUST ENERGY SELECT INDEX | -3 | -3 |
| XLP | SELECT SECTOR SPDR TRUST CONSUMER STAPLES INDEX | -2 | -2 |
| XLV | SELECT SECTOR SPDR TRUST HEALTH CARE SELECT INDEX | -3 | -3 |
| XLU | SELECT SECTOR SPDR TRUST UTILITIES SELECT INDEX | 1 | 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.
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