This Market is boring the hell out of me – I like to buy stocks on my watchlist during serious volatility, and tend to sell my most overpriced assets when things get too frothy. Right now we are range bound – which keeps me on the sidelines.
At times like this – I like to read as much as I can, especially from sources that challenge the pillars of my investment process. Might sound boring, but at least it keeps me out of the Bars!
Small Caps and Technology are still going down – Bonds and Gold are still going up – interesting divergence in the Sectors – look at Healthcare -3 and Utilities +3.
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 | 2 | -1 |
| SPX | S&P 500 INDEX | -1 | -3 |
| RUT | RUSSELL 2000 INDEX | -3 | -3 |
| NDX | NASDAQ-100 INDEX INDEX | -3 | -3 |
| VIX | CBOE MARKET VOLATILITY INDEX | -3 | 1 |
| /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 | -2 |
| $DJT | Dow Jones Transportation Average | 2 | -1 |
| XLK | SELECT SECTOR SPDR TRUST TECHNOLOGY SELECT INDEX | -1 | -3 |
| XLI | SELECT SECTOR SPDR TRUST INDUSTRIAL SELECT INDEX | 2 | -1 |
| XLY | SELECT SECTOR SPDR TRUST CONSUMER DIS SELECT INDEX | -3 | -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 | -2 | 1 |
| 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 | -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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