Daily Market Update – November 1, 2016 (Close)
This will be a busy week, on paper, at least.
With everything going on this week, yesterday was really a boring day and had one of the tightest trading ranges in quite some time.
Not so today as there may have been even more fear over the upcoming election results, taking the market on a wild ride, that saw it cut is mid-day 200 point decline in half by the closing bell.
With still lots ahead, anything can still happen, as earnings, the FOMC and the Employment Situation report can all come into play.
This morning’s futures looked as if they wanted to get November off to the kind of start that would break a 3 month losing streak but instead that hole is now a little deeper.
At this point, I would be happy to just hold onto the gains, mostly on paper, that 2016 has brought and I think that given my patience with energy and commodities, may put the portfolio in continued good position for 2017.
Commodities were stronger today and that least offered a chance to sell some calls on the silver position from a few weeks ago.
In the meantime, though, I’d still like to have some opportunities to add to the paltry list of 2016 closed positions and would really welcome any chances to generate some more revenue from existing positions.
I expect that 2017 will also look more at longer term strike expirations as the portfolio has become a trading one into more of a buy and hold kind.
Even as dividends have been accumulating, I still prefer an actively traded existence and it has now been almost 18 months since I have been routinely opening 3 or more new positions each week.
These days even one new position in a week seems like a busy week.
As long as there are other trades to be made to generate some revenue, I haven’t really minded, but this week may not even offer any of those opportunities.
What I do hope for this week is some good earnings news that could put some existing positions either closer to assignment or more in contention for having calls written upon them. There actually was some good earnings news received today on some positions, but their nice gains faded along with the market, even as still ending the day higher.
That’s not asking too much, but as I looked at a recent chart showing the S&P 500 performance against stocks hitting above their 200 DMA, it was striking at the divergence, as the performance of individual stocks was significantly lagging.
That was very much the story of 2015, as well, in which just a handful of really well performing mega-caps created an illusion of a decent year.
At some point, when people look at end of the year performance, that sort of nuance will be lost in the interpretation.
But it is the reality on the ground and it continues to make things frustrating, even when the year may be a good one on a personal performance level.
Every time I think that, though, I’m reminded that whatever contributed to an out-performance year in 2016 was also the reason for under-performance in 2015.
So there’s that.