Daily Market Update – July 19, 2016 (Close)


Yesterday the market traded in a very tight range after hitting high after high last week.

But still, it was yet another new record closing high to start the week.

Earnings continued coming in and at least they haven’t been stinking up the place.

Today, those earnings didn’t exactly smell like roses, but they still didn’t stink.

So the market finished mixed today with the DJIA hitting another new high, while the S&P 500 gave up a little bit of ground.

As opposed to previous quarters when expectations were very low, this quarter the expectations have been for some better performance, but so far what has helped is that there hasn’t been much in the way of disappointing guidance, particularly from overseas operations or businesses.

The earnings march continued today and for the next 3 weeks or so and really finds itself culminating with retailers reporting.

None of what happens between now and next week’s FOMC Statement release is likely to have the ability to move the needle on interest rates, but at least there’s been a slow down in mediocrity.

With the opening of a new position yesterday, I still have some cash that I’m willing to spend this week, but I’m still not ready to make too much of a commitment at these levels.

I don’t mind playing the same game week after week with a single oil position, but too many stocks have gone up to feel very comfortable about opening other new positions until the market digests some of these gains.

Maybe the way this run higher is going to do that is by simply slowing the rate of rise down, but that’s not a very common way of doing things.

Markets tend to not know moderation as so much of the moves are fueled by speculation, fear and whatever other emotions can be harnessed at any moment in time.

With 2 positions set to expire this week in the same company, I wouldn’t mind being able to close one of them out with an assignment and despite upcoming earnings in Marathon Oil, I wouldn’t mind re-opening a position in the event of assignment of shares or the expiration of the short puts.

In the meantime, I’ll hope to continue watching some climb in asset value as 2016 continues to be a good year, despite having had so few trades.

It was nice, though, to have an opportunity to do another early in the week rollover of Marathon Oil and to sell some calls on the uncovered Hewlett Packard position.

I’d like more.

As there are moves higher, I do hope to sell more calls on uncovered position, but am a little torn between selling shorter term options and the hope for assignment or going longer term to boost the ROI in the hope that I won’t miss the opportunity to have the assignments happen at some future date.

But honestly?

I’ll take anything.