Daily Market Update – March 2, 2016 (7:30 AM)
Yesterday was a pretty satisfying day.
With a 300 point gain continuing the advance and swift turn around from a dismal start to 2016, we’re in a better position to withstand any pressure that could come on Friday as the next Employment Situation Report is released.
Yesterday also marked a sudden turnaround for those that focused on how the S&P 500 had dipped below its 50 day moving average, even though it had only gone above its 50 dma the day or two before.
This morning, even as oil is trading significantly lower, the market doesn’t seem to be following.
While it’s not higher, it isn’t as low as oil would have taken it just a few days ago.
I was happy to have sold some calls on another uncovered position and simply watching my portfolio’s bottom line grow.
I continue to prefer seeing some consolidation and base formation at this point and don’t get terribly excited about missing those 300 point gains.
While the last 2 weeks have been good ones, the preponderant theme has been that large advances have been offset by even larger moves lower.’
Maybe there’s reason to think that the theme is now changing, but it may take a little bit more evidence.
Today’s suggestion of taking some rest would be a good first step toward making an assault on 2015’s highs.
Again, I wouldn’t mind being relatively passive, at least as far as it came to opening new positions, if I could add to the list of covered positions.
Not only would that help overall return, but as I look as some of the positions that are in recovery, as they approach their purchase prices, the accumulated premiums and dividends are putting most well above the performance of the S&P 500 for the respective holding periods.
That’s nice, but for my temperament, those holding periods have been far too long and there have been other missed premium income opportunities in the effort to ride out those prolonged declines.
Ultimately, when those positions settle out, I’ll probably be happy, but not yet.
Getting closer, but not yet.