Daily Market Update – March 2, 2016 (Close)

 

 

 

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.


.

.



Click here for reuse options!
Copyright 2016 TheAcsMan

Daily Market Update – March 2, 2016

 

 

 

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.


.

.



Click here for reuse options!
Copyright 2016 TheAcsMan

Daily Market Update – March 1, 2016 (Close)

 

 

 

Daily Market Update – March 1, 2016 (Close)

While I expected that at some point the stock market would come to its senses and realize that it shouldn’t be reflexively following the path of oil, I don’t particularly want that realization to come until stocks have had a chance to make up for their earlier stupid decision to follow oil much lower.

Yesterday was an example of their deciding to go in opposite directions, but it was an unfortunate decision for stocks.

Oil turned around nicely yesterday and stocks went the other way.

This morning it seemed as if the irrational relationship was back, although just like yesterday, the futures reflected only the early birds and their ability to forecast any given 6 1/2 hours after the opening bell rings, is pretty weak.

This morning both oil and stocks were higher, as some were beginning to take note that the S&P 500 sunk below an important technical line yesterday. The general feeling is that sinking below that line was a sign of heading even lower.

What they didn’t mention is that it only went above that 50 day moving average a session or two earlier after a prolonged period below. By the same token, poking above that line is considered a bullish sign.

Perspective is pretty important sometimes and that perspective was totally ignored for the benefit of those not actually bothering to look and charts.

For those who believe in the infallible nature of charts, the rule is pretty simple. Hitting the 50 day moving average from above is a bearish sign and hitting it from below on the climb higher is a very bullish signal.

Maybe I missed it, but I didn’t hear those chart bulls come out and sing the praises of their charts a few days ago.

That may be because there still may be some good reason for caution, rather than sending out the bullish call that was based on a technical factor.

Especially in hindsight when it’s clear just how quickly that technical factor can disappear.

Or re-appear, as it could and did today, as the market closed well above that 50 dma.

I was still be watching today and kept an eye on all of this week’s possible trades, but the moves continued too strongly to have considered an entry, as they went higher early in the day along with the market and never really gave anything back when the market did.

I wouldn’t have minded either some weakness or stability in those positions today, just as I’d like the same for the market for the rest of the week.

That could be a tall order as the Employment Situation Report is scheduled and anything goes once that’s released.

For the most part, with the uncertainty of the reaction of traders to any kind of news, I think that I would rather not be very aggressive at putting any cash to work.

I was happy enough to sell some calls and see the bottom line improve nicely again


.

.



Click here for reuse options!
Copyright 2016 TheAcsMan

Daily Market Update – March 1, 2016

 

 

 

Daily Market Update – March 1, 2016 (7:30 AM)

While I expected that at some point the stock market would come to its senses and realize that it shouldn’t be reflexively following the path of oil, I don’t particularly want that realization to come until stocks have had a chance to make up for their earlier stupid decision to follow oil much lower.

Yesterday was an example of their deciding to go in opposite directions, but it was an unfortunate decision for stocks.

Oil turned around nicely yesterday and stocks went the other way.

This morning it seems as if the irrational relationship is back, although just like yesterday, the futures reflect only the early birds and their ability to forecast any given 6 1/2 hours after the opening bell rings, is pretty weak.

This morning both oil and stocks are higher, as some were beginning to take note that the S&P 500 sunk below an important technical line yesterday.

What they didn’t mention is that it only went above that 50 day moving average a session or two earlier after a prolonged period below.

Perspective is pretty important sometimes and that perspective was totally ignored for the benefit of those not actually bothering to look and charts.

For those who believe in the infallible nature of charts, hitting the 50 day moving average from above is a bearish sign and hitting it from below on the climb higher is a very bullish signal.

Maybe I missed it, but I didn’t hear those chart bulls come out and sing the praises of their charts a few days ago.

That may be because there still may be some good reason for caution, rather than sending out the bullish call that was based on a technical factor.

Especially in hindsight when it’s clear just how quickly that technical factor can disappear.

Or re-appear, as it could today.

I’ll still be watching today and keeping an eye on all of this week’s possible trades, most of which were too strong yesterday to have considered an entry, as they went higher early in the day along with the market and never really gave anything back when the market did.

I wouldn’t mind either some weakness or stability in those positions today, just as I’d like the same for the market for the rest of the week.

That could be a tall order as the Employment Situation Report is scheduled and anything goes once that’s released.

For the most part, with the uncertainty of the reaction of traders to any kind of news, I think that I would rather not be very aggressive at putting any cash to work.


.

.



Click here for reuse options!
Copyright 2016 TheAcsMan