Daily Market Update – October 10, 2016 (Close)
Yesterday was a surprisingly strong day in the market, even as some of those gains were given up by the end of trading.
There wasn’t too much reason behind the gain, although it again was another example of oil and stocks getting back together, as oil prices have made the kind of comeback that wasn’t seen by many and did so for about the third time this year.
Every time oil is written off, it just comes back stronger than ever, as long as your time horizon is a short one.
Unless of course your time horizon was less than 24 hours, because today oil turned right around and took the stock market along with it.
Still, now having broken the $50 level, there are reasons to believe that OPEC and non-OPEC nations may be getting their acts together and realizing it’s better not to cheat.
For now, stocks seem to think that’s a good thing, but that can’t last unless there’s really a demand side driven increase in the price of oil.
With yesterday’s stock gains, I’d certainly like to see more, but not today, obviously.
I didn’t think that I was going to be spending any money this week. I just wanted to see those gains materialize so that there may be an opportunity to sell some calls on anything that has remained fallow.
Instead, there may have been reason to take advantage of the decline in oil prices today with that old friend.
With next week’s end of the monthly cycle and a number of expiring positions to come, there may be more to do, but this week, will otherwise be a very quiet one, although, now there’s at least one position to keep an eye upon.
That still means lots of watching and some hoping as Friday rolls around and banks get the earnings season underway and perhaps the official Retail Sales Report could give Janet Yellen some ammunition when she speaks later in the day to begin her campaign to justify a rate increase as soon as possible.