Daily Market Update – May 27, 3016

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Daily Market Update – May 27, 2016 (8:15 AM)


The Week in Review will be posted by 10 PM and the Weekend Update will be posted by Monday at Noon.

The following trade outcomes are possible today:

Assignments:  none

Rollovers:    none

Expirations:   none

The following were ex- dividend this week:   HFC (5/25 $0.33), IP (5/25  $0.44)

The following will be ex-dividend next week:  MOS (5/31 $0.275), ANF (6/1 $0.20), BAC (6/1 $0.05), COH (6/1 $0.34)

Trades, if any, will be attempted to be made prior to 3:30 PM EDT


Daily Market Update – May 26, 2016 (Close)

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Daily Market Update – May 26, 2016 (Close)


After two big days of gains, the June 2016 option cycle is off to a good start and it didn’t give anything up today as some traders are getting ready to begin summer.

There’s till a long way to go until the cycle ends and I would certainly like to see the few positions that I have that do expire at that time actually get assigned, there’s one potential obstacle.

That obstacle is the FOMC Meeting announcement that occurs 2 days before the monthly expiration.

SInce many have given credit to investors coming to grips with a rate increase being announced  at that time, there could be some price to be paid if whatever does happen gets construed negatively.

Between now and then we will get plenty of economic news, although the very latest numbers suddenly seem to be the kind that would justify an increase.

That will especially be the case if this week’s GDP is stronger and we have some upward revisions, and next week’s Employment Situation Report is the same.

The latter report could really be the key if there are also some upward revisions to the recent month’s disappointing numbers.

About 6 months ago we went through this same thing and investors finally started to embrace the likelihood of a small rate increase.

That embrace was pretty fickle once the increase was announced and it took a few months for the market to get back on stride after having a 19% decline.

Whether the FOMC helped to slow down a heating up economy by a pre-emptive increase last time, or simply jumped the gun and misread the data, will be subject to interpretation. The same may be the case in just a few weeks.

This morning’s futures were flat, but that’s not too surprising after the past 2 days and the big news that could come our way tomorrow. What’s surprising, to me, at least, is that no one really seemed to be interested in taking profits before tomorrow’s GDP and then a long weekend, to boot.

With earnings not being horrible over the past week and oil holding steady, things haven’t conspired against investors even as interest rates may be going higher.

With earnings just about done and the embrace in place, we may simply be back to tracking oil prices for a while and today oil really did nothing of interest.

I just hope that the moves, whether oil or stocks higher, continues, so long as stocks follow oil in that direction, regardless of whether it makes sense or not.


Daily Market Update – May 26, 2017

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Daily Market Update – May 26, 2016 (7:30 AM)


After two big days of gains, the June 2016 option cycle is off to a good start.

There’s till a long way to go until the cycle ends and I would certainly like to see the few positions that I have that do expire at that time actually get assigned, there’s one potential obstacle.

That obstacle is the FOMC Meeting announcement that occurs 2 days before the monthly expiration.

SInce many have given credit to investors coming to grips with a rate increase being announced  at that time, there could be some price to be paid if whatever does happen gets construed negatively.

Between now and then we will get plenty of economic news, although the very latest numbers suddenly seem to be the kind that would justify an increase.

That will especially be the case if this week’s GDP is stronger and we have some upward revisions, and next week’s Employment Situation Report is the same.

The latter report could really be the key if there are also some upward revisions to the recent month’s disappointing numbers.

About 6 months ago we went through this same thing and investors finally started to embrace the likelihood of a small rate increase.

That embrace was pretty fickle once the increase was announced and it took a few months for the market to get back on stride after having a 19% decline.

Whether the FOMC helped to slow down a heating up economy by a pre-emptive increase last time, or simply jumped the gun and misread the data, will be subject to interpretation. The same may be the case in just a few weeks.

This morning’s futures are flat, but that’s not too surprising after the past 2 days and the big news that could come our way tomorrow.

With earnings not being horrible over the past week and oil holding steady, things haven’t conspired against investors even as interest rates may be going higher.

With earnings just about done and the embrace in place, we may simply be back to tracking oil prices for a while.

I just hope that the move higher continues, regardless of whether it makes sense or not.


Daily Market Update – May 25, 2016 (Close)

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Daily Market Update – May 25, 2016 (Cloe)


No one expected yesterdays New Home Sales surprise to the upside.

Neither did anyone expect that the New Home Sales Report would have much significance, as it has mostly been a yawner for the past few years.

In addition to some really strong numbers, with an increase of about 20% over expectations, the avarage price for a new home was significantly higher and was more in the range of the higher end home builders.

That’s either good or bad, depending on your perspective.

If you’re Bernie Sanders, it may be reflective of the skew in society, in that the increase didn’t represent first time home buyers joining in on the “American Dream,” but rather it was those already living the dream who were moving forward and leaving others further and further behind.

Others see it as good news and showing more consumer participation in the economy which will filter down to things like home furnishings, appliances and all of those other things that are part and parcel of owning a new home.

This morning the futures were cautiously higher following that large gain yesterday and there is some more good earnings news from after the close yesterday to perhaps support some of those gains.

That caution was thrown to the wind on some good EU news that may have averted another in a series of annual Greek crises. Add to the more strength in oil and accepting that higher interest rates don’t have to be bad and you gad a really good day.

I’m just happy to have actually made a trade this weekend even rolling it over in order to capture the dividend.

Going along for the ride was good, too.

With that trade done, there may not be much else to do for the rest of the week, although I’ll be on the lookout for any trading opportunities, especially if it means getting some income out of non-performing positions.

With next week being a shortened trading week there may not be too much to do then either, but at least next week has a couple of expiring positions and a decent number of ex-dividend positions that will generate some income to make it worth getting out of bed while we await what the FOMC will do and keep watching the price of oil move higher into the summer.



Daily Market Update – May 25, 2016

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Daily Market Update – May 25, 2016 (7:30 AM)


No one expected yesterday;s New Home Sales surprise to the upside.

Neither did anyone expect that the New Home Sales Report would have much significance, as it has mostly been a yawner for the past few years.

In addition to some really strong numbers, with an increase of about 20% over expectations, the avarage price for a new home was significantly higher and was more in the range of the higher end home builders.

That’s either good or bad, depending on your perspective.

If you’re Bernie Sanders, it may be reflective of the skew in society, in that the increase didn’t represent first time home buyers joining in on the “American Dream,” but rather it was those already living the dream who were moving forward and leaving others further and further behind.

Others see it as good news and showing more consumer participation in the economy which will filter down to things like home furnishings, appliances and all of those other things that are part and parcel of owning a new home.

This morning the futures are cautiously higher following that large gain yesterday and there is some more good earnings news from after the close yesterday to perhaps support some of those gains.

I’m just happy to have actually made a trade and even rolling it over in order to capture the dividend.

With that done, there may not be much else to do for the rest of the week, although I’ll be on the lookout for any trading opportunities, especially if it means getting some income out of non-performing positions.

With next week being a shortened trading week there may not be too much to do then either, but at least next week has a couple of expiring positions and a decent number of ex-dividend positions that will generate some income to make it worth getting out of bed while we await what the FOMC will do and keep watching the price of oil move higher into the summer.