Daily Market Update – September 20, 2016 (Close)
This could still be a big week, but there’s again really no telling in which direction things might go.
That was made pretty clear yesterday when a large gain evaporated, almost came back and then evaporated again.
Today the gains lost weren’t as big, but the market again just had no direction.
All eyes are on central banks these days and most are focused on our FOMC.
The prevailing thought is that there will be no rate hike announced tomorrow, but the wording in the statement release could and does often move markets more than the decision, itself.
What is also curious is that everyone believes that a decision to increase rates was going to be announced in either September or December, without regard to the fact that there are some intervening months.
The FOMC made it clear earlier in the year that their decision wasn’t necessarily going to be tied to a scheduled meeting.
But there is also another scheduled meeting before December and it happens to come about 2 weeks before the election, so things could get interesting.
I surprised myself by making a trade yesterday and using some of that cash that was obviously burning a hole in my pocket.
However, I used the monthly option and that means that I still have no positions expiring this week and only a single ex-dividend position.
That leaves me hungering for some income opportunities.
That hunger certainly didn’t get requited today.
To get any satisfaction for those hunger pangs, it would likely take a sharp move higher on Wednesday, as the FOMC presumably decides to do nothing and doesn’t sound very hawkish afterward.
I think it would take both of those to happen to get the market to celebrate.
For now, I’ll just do what any sane person would do and not roll the dice any further until the FOMC places its cards on the table.
How’s that for the mixed metaphor that has been this entire interest rate season?