Monthly Archives: March 2016

Daily Market Update – March 22, 2016 (Close)

There wasn’t too much reason to suspect that there would be a lot going on this week.

With an Easter Holiday shortened trading week and very little on the economic agenda, it looked as if it just might be another week of oil dictating where things were heading.

Last week, though, gave some suggestion that maybe oil and stocks were thinking of going their own ways.

As long as they continued following each other higher, I was all for their dalliance, but disconnecting as oil heads higher isn’t the best after such broad declines over such an extended period of time.

This morning, however, as we should always be prepared whenever we think nothing is likely to happen, something happened.

Natural terror is one thing, but this time it was another incidence of man made terror.

As news was unfolding early this morning in Brussels of the carnage wreaked by terrorists, markets were fairly calm, as they tend to be when such terrible things occur.

When you consider how irrational markets can be in the short term, it’s really amazing how calm and collected they can be in the face of real uncertainty.

The kind that really matters.

Even across the continent where the carnage is real and the fear must be with everyone other than those who would bring the harm, markets are underplaying the morning’s horrible events.

Ultimately, that may be every bit as good of an antidote to terrorism as any proposed substantive erosion of privacy and rights.

This morning there wasn’t too much question where most attention would be centered.

With a single new position opened yesterday, I did have a trade out for another, as well and was hoping to still be able to make that trade today.

No one was more surprised than me to see it actually happen.

Otherwise, though, I expect it to be quiet on my end of things and don’t expect very much opportunity to find cover for uncovered positions.

With one position to roll over this week and a low likelihood of making any additional new position trades, I’ll be glued to the news for the next 2 days and hopeful that justice may arrive in short order.

As that great Harry Chapin song “Taxi” had said: 

“There was not much more for us to talk about…”

That summed it up this morning and as the rest of the day unfolded, too.

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Daily Market Update – March 22, 2016 (8:00 AM)

There wasn’t too much reason to suspect that there would be a lot going on this week.

With an Easter Holiday shortened trading week and very little on the economic agenda, it looked as if it just might be another week of oil dictating where things were heading.

Last week, though, gave some suggestion that maybe oil and stocks were thinking of going their own ways.

As long as they continued following each other higher, I was all for their dalliance, but disconnecting as oil heads higher isn’t the best after such broad declines over such an extended period of time.

This morning, however, as we should always be prepared whenever we think nothing is likely to happen, something happened.

Natural terror is one thing, but this time it was another incidence of man made terror.

As news was unfolding early this morning in Brussels of the carnage wreaked by terrorists, markets were fairly calm, as they tend to be when such terrible things occur.

Even across the continent where the carnage is real and the fear must be with everyone other than those who would bring the harm, markets are underplaying the morning’s horrible events.

Ultimately, that may be every bit as good of an antidote to terrorism as any proposed substantive erosion of privacy and rights.

This morning there’s not too much question where most attention will be centered.

With a single new position opened yesterday, I did have a trade out for another, as well and may still look to make that trade.

Otherwise, though, I expect it to be quiet on my end of things and don’t expect very much opportunity to find cover for uncovered positions.

With nothing to roll over this week and a low likelihood of making any additional new position trades, I’ll be glued to the news and hopeful that justice may arrive in short order.

As that great Harry Chapin song “Taxi” had said: 

“There was not much more for us to talk about…”

That sums it up this morning.

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Daily Market Update – March 18, 2016 (Close)

There’s not too much going on this week on the economic news front except for the release of the GDP on Friday.

Coincidentally, markets will be closed on Friday so any kind of reaction may be a little bit delayed, if at all.

After the FOMC Statement release this past week, the expectations for a robust GDP may be lessened.

In that case, a weaker GDP or at least one in line with lessened expectations may result in some market enthusiasm the following week, if anyone can still remember.

However, a better than expected GDP may lead some to believe that the next interest rate hike may come sooner than they interpreted the FOMC’s comment to suggest.

What the FOMC didn’t do was to say that there would be a delay in getting the next rate hike. What they did say, or at least what Janet Yellen said, was that there would likely not be as many rate hikes in 2016 as had been originally thought.

People hear what they want to hear and what they heard was that the next rate hike would be delayed.

This morning the market was understandably flat and it’s likely that the association with the price of oil will continue until that point that someone realizes that there’s little rationale for doing so.

Unfortunately, that may mean that markets won’t recover all that was lost as they followed oil lower, but as it stands, the market is at least at a break-even for 2016 as we get ready to bring a close to March.

Today wasn’t going to be that day, though, as there was no theme and almost no range of trading.

With an assignment last week, but no ex-dividend positions this week and no positions set for expiration, I would still like to make some trades to have some chance of generating income this week and will be again considering the energy sector.

The one trade was more on the speculative side, but as long as that sector specific volatility remains high, even after the gains seen in the energy sector, there is some added cushion from the rich option premiums to offset a portion of the risk that is still there.

I don’t think that i would get overly aggressive or spend too much in that area, but it continues to look as if there is additional opportunity there and in related companies.

Otherwise, there’s not too much reason to expect much of anything as the world is generally quiet and preparing for spring break of some sort everywhere that counts.

With markets closed on Friday and with volatility falling, there may be some reason to consider the use of an extended weekly option to get some additional premium, particularly if a dividend may also be involved.

Otherwise, I expect little in the way of personal fireworks.

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Daily Market Update – March 18, 2016 (9:00 AM)

There’s not too much going on this week on the economic news front except for the release of the GDP on Friday.

Coincidentally, markets will be closed on Friday so any kind of reaction may be a little bit delayed, if at all.

After the FOMC Statement release this past week, the expectations for a robust GDP may be lessened.

In that case, a weaker GDP or at least one in line with lessened expectations may result in some market enthusiasm the following week, if anyone can still remember.

However, a better than expected GDP may lead some to believe that the next interest rate hike may come sooner than they interpreted the FOMC’s comment to suggest.

What the FOMC didn’t do was to say that there would be a delay in getting the next rate hike. What they did say, or at least what Janet Yellen said, was that there would likely not be as many rate hikes in 2016 as had been originally thought.

People hear what they want to hear and what they heard was that the next rate hike would be delayed.

This morning the market is understandably flat and it’s likely that the association with the price of oil will continue until that point that someone realizes that there’s little rationale for doing so.

Unfortunately, that may mean that markets won’t recover all that was lost as they followed oil lower, but as it stands, the market is at least at a break-even for 2016 as we get ready to bring a close to March.

With an assignment last week, but no ex-dividend positions this week and no positions set for expiration, I would like to make some trades to have some chance of generating income this week and will be again considering the energy sector.

I don’t think that i would get overly aggressive or spend too much in that area, but it continues to look as if there is additional opportunity there and in related companies.

Otherwise, there’s not too much reason to expect much of anything as the world is generally quiet and preparing for spring break of some sort everywhere that counts.

With markets closed on Friday and with volatility falling, there may be some reason to consider the use of an extended weekly option to get some additional premium, particularly if a dividend may also be involved.

Otherwise, I expect little in the way of personal fireworks.

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