Daily Market Update – March 2, 2016 (Close)
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 was trading significantly lower, the market didn’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.
By the same token, when oil reversed itself later in the morning, it’s not like the market really caught on fire, but it did move from its low to close at hits high, although the range was very tight by recent standards.
Yesterday I was happy to have sold some calls on another uncovered position and simply watching my portfolio’s bottom line grow. I would have liked to have done more of the same today.
Today I was just happy to see some large gains in the exact positions did have a lot to gain to to just get back to even.
While some of those positions may have a long way to go higher, including Chesapeake Energy, who strange saga of its founder may have ended today with his death in a single car crash the day after his federal indictment.
I still continue to prefer seeing some consolidation and base formation at this point and don’t get terribly excited about missing those 300 point gains, although I’ll keep welcoming the gains in the downtrodden, which also includes Cliffs Natural, whose new CEO, who had won last years proxy fight, also happened to die this past week.
While the last 2 weeks have been good ones for the living, 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.
Copyright 2016 TheAcsMan