Daily Market Update – October 11, 2016 (Close)

 

 

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.

.

Daily Market Update – October 11, 2016

 

 

Daily Market Update –  October 10, 2016 (8:00 AM)


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.

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.

I don’t think that I’m going to be spending any money this week, so I just want to see those gains materialize so that there may be an opportunity to sell some calls on anything that has remained fallow.

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.

That 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.

.

Daily Market Update – October 10, 2016 (Close)

 

 

 

Daily Market Update –  October 10, 2016 (Close)


Last week provided some confusing data on the Employment Situation front, but markets were confused all week long.

This week may end up being less confusing, but we may have to wait until Friday to really get any of that clarity.

Friday is the day that the major money center banks release earnings and it will also be the day that the Retail Sales Report is released.

The latter is backward looking, but the former may offer some glimpse into what 2017 may have to offer with regard to economic growth.

After those are all done, then Janet Yellen addresses the Boston Federal Reserve’s conference with a real appropriate topic: "The Elusive Recovery."

We may get to find out on Friday morning how those big banks feel about their own upcoming business prospects.

A real economic recovery can’t have much chance if the banks don’t lead the way, so Friday morning may be an important one.

If the banks see good things ahead, markets may very well take note, but it’s unclear as to how they may take note.

Based on some of the uneasiness whenever it appeared that an interest rate increase was going to happen sooner rather than later, you could easily envision a market sell-off with any perceived economic strength.

If that’s the case, at some point, you would imagine that cooler heads would prevail, much as they did in February and then help to move the markets beyond their all time highs.

I do have some cash to spend this week, even as I don’t have too much interest in doing so. But when I also look at the fact that there are no ex-dividend positions this week and no positions set to expire, I would then like to create my own opportunities.

With the market pointing toward a moderately positive open this morning, once again my preference for the generation of the weekly income I crave would have been through the sale of calls on uncovered positions.

But that didn’t happen today, even as the market almost ended with a triple digit move, after having taken last week off from such moves.

Some sustained moves higher would be very welcome and I would love to recreate last week’s experience.

I should qualify that ad say that I would like to recreate that experience, except without the experience of having opened that speculative new position at precisely the wrong time.


 


 

Daily Market Update – October 10, 2016

 

 

Daily Market Update –  October 10, 2016 (7:30 AM)


Last week provided some confusing data on the Employment Situation front, but markets were confused all week long.

This week may end up being less confusing, but we may have to wait until Friday to really get any of that clarity.

Friday is the day that the major money center banks release earnings and it will also be the day that the Retail Sales Report is released.

The latter is backward looking, but the former may offer some glimpse into what 2017 may have to offer with regard to economic growth.

After those are all done, then Janet Yellen addresses the Boston Federal Reserve’s conference with a real appropriate topic: “The Elusive Recovery.”

We may get to find out on Friday morning how those big banks feel about their own upcoming business prospects.

A real economic recovery can’t have much chance if the banks don’t lead the way, so Friday morning may be an important one.

If the banks see good things ahead, markets may very well take note, but it’s unclear as to how they may take note.

Based on some of the uneasiness whenever it appeared that an interest rate increase was going to happen sooner rather than later, you could easily envision a market sell-off with any perceived economic strength.

If that’s the case, at some point, you would imagine that cooler heads would prevail, much as they did in February and then help to move the markets beyond their all time highs.

I do have some cash to spend this week, even as I don’t have too much interest in doing so. But when I also look at the fact that there are no ex-dividend positions this week and no positions set to expire, I would then like to create my own opportunities.

With the market pointing toward a moderately positive open this morning, once again my preference for the generation of the weekly income I crave would be through the sale of calls on uncovered positions.

Some sustained moves higher would be very welcome and I would love to recreate last week’s experience.

I should qualify that ad say that I would like to recreate that experience, except without the experience of having opened that speculative new position at precisely the wrong time.



Dashboard – October 10 – 14, 2016

 

 

 

 

 

SELECTIONS

MONDAY:   Earnings season begins this week, but not for real until Friday, when Retail Sales are also reported. Guidance may be more important than ever as 2016 comes to an end and we still wonder where the interest rate increases we have all been expecting this year are hiding

TUESDAY:   Yesterday was a surprisingly strong day, even as some of the gains were lost. Today appears to be getting off to a flat start as we await the end of the week’s earnings, Retail Sales and Janet Yellen

WEDNESDAY: With markets facing an unexpected large loss yesterday, once again following oil, this morning appears to be flat as we gear up for earnings and more.

THURSDAY:  It looks as if yesterday’s breather, despite some fairly strong opinion contained in last month’s FOMC meeting minutes about raising interest rates, won’t be holding up as this morning begins. I would have thought that the news in those minutes would have sent markets into a dive, but maybe there’s a delayed reaction this morning, instead.

FRIDAY:. Futures are getting off to a good start as JP Morgan shows that they were healthier than thought with good top line revenue


 

 



 

                                                                                                                                           

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