Daily Market Update – November 2, 2016 (7:30 AM)
There is still reason to believe that this will be a busy week, on paper, at least.
Unlike the start to the week, yesterday was far from boring, but it wasn’t really anything related to the economy or to business that stimulated selling.
It was another round of fear over the election results.
The investor class clearly doesn’t like the idea that a billionaire non-politician could end up as the leader of the free world.
Next Wednesday morning can’t come soon enough.
Yesterday’s sell-off wasn’t as bad as it was heading to be, as the market did make back about half of its losses by the close.
That’s usually a good sign, but this morning there’s no indication of a continuing rebound in the futures market.
With the week coming to its mid-point and the FOMC meeting this afternoon culminating in its statement release, there’s little reason to get ahead of the announcement, other than in a defensive way.
I would certainly take an opportunity to sell calls into strength prior to that announcement, but could see no reason to part with cash.
It’s really unlikely that anything good will come out of today’s meeting as far as market sentiment is concerned.
Any wording that is hawkish may send sellers selling as they will feel that time is really now running out to take profits, while dovish words would make people wonder just how bad the economy really is, even as we start seeing signs of awakening.
I’ll try to keep myself awake as it unwinds, but there doesn’t appear to be much trading action in the forecast, even as yesterday’s call sale was a nice surprise.