Monthly Archives: July 2016

Daily Market Update – July 19, 2016 (7:30 AM)

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.

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 continues 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.

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.

Daily Market Update – July 18, 2016 (Close)

There’s very little economic news this week as were getting ready to see whether all of last week’s multiple new highs would have legs.

The following week we do have an FOMC Statement release, but at this point, no one is yet talking about the possibility of an increase in the same way as was the case in the 2 weeks preceding the June 2016 meeting.

That may change, but it’s not too clear where the change would be coming from at this point.

In the meantime there are no shortage of earnings reports this week and it will be interesting to see if some of the positive tone set by the financials will continue this week or whether anyone will dare to get pessimistic because of Brexit.

So far, this week’s important earnings haven’t put a damper on things and the last time I looked, Netflix was about as important as Facebook in the big picture.

Today, despite trading in a very narrow range all day long, did manage to add to the gains of last week and inched us a bit more high.

With a number of assignments last week I do have more freed up cash to use than has been the case for quite some time, but sitting at all time highs it isn’t easy to just plow it right back into the market.

With one expiring position and one ex-dividend position, I would like to generate some more income on the week, so my inclination is to spend some of that money.

And I did that today in the same way as has been the case in about 7 of the past weeks over the past 3 months, or so.

Since I wouldn’t mind just repeating the trade that has worked for the past months, I was anxious to take advantage of some decline in the price of oil this morning, but otherwise, I didn’t expect to go on anything resembling a spending spree.

When at new highs it’s really anyone’s guess as to whether there will be a breakout even higher or saner minds take over and take profits.

Human nature often misses the opportunity to take profits because of that basic optimism that leads to greed.

I’m as greedy as the next person, but I do like to book profits, whether they’re in the form of share appreciation or lots of dividends and option premiums.

With money in hand and with futures pointing to a quiet morning, l took my cue from whatever it was that was to unfold and had no other great expectations for the morning or maybe not even for the week.

I certainly don’t mind accumulating some cash, but do mind the possibility of missing any developing or further developing opportunities.

Hopefully today’s trade will find a way of adding to that revenue for at least this week and maybe beyond.

Daily Market Update – July 18, 2016 (7:30 AM)

There’s very little economic news this week as we get ready to see whether all of last week’s multiple new highs have legs.

The following week we do have an FOMC Statement release, but at this point, no one is yet talking about the possibility of an increase in the same way as was the case in the 2 weeks preceding the June 2016 meeting.

In the meantime there are no shortage of earnings reports this week and it will be interesting to see if some of the positive tone set by the financials will continue this week or whether anyone will dare to get pessimistic because of Brexit.

With a number of assignments last week I have more freed up cash to use than has been the case for quite some time, but sitting at all time highs it isn’t easy to just plow it right back into the market.

With one expiring position and one ex-dividend position, I would like to generate some more income on the week, so my inclination is to spend some of that money.

I wouldn’t mind just repeating the trade that has worked for the past month or two if there is some decline in the price of oil this morning, but otherwise, I don’t expect to go on anything resembling a spending spree.

When at new highs it’s really anyone’s guess as to whether there will be a breakout even higher or saner minds take over and take profits.

Human nature often misses the opportunity to take profits because of that basic optimism that leads to greed.

I’m as greedy as the next person, but I do like to book profits, whether they’re in the form of share appreciation or lots of dividends and option premiums.

With money in hand and with futures pointing to a quiet morning, I’ll take my cue from whatever it is that unfolds and have no other great expectations for the morning or maybe not even for the week.

I certainly don’t mind accumulating some cash, but do mind the possibility of missing any developing or further developing opportunities.