Daily Market Update – November 7, 2016 (7:30 AM)
Early yesterday evening the S&P 500 futures were expressing a strong desire to break the 9 day long streak that broke a 26 year record for consecutive daily losses.
It may be coincidental, but after a week in which the declines were based on growing concerns that Donald Trump could find a path to 270 electoral votes, the evening’s strong advance came as some of the air was let out of the sails.
In the early trading the market was up nearly 1.5%, perhaps strengthening the belief that a Clinton victory could recoup everything that was lost in the previous 9 sessions.
The alternative, a Trump victory, could possibly then be the next step in taking the current 5% decline into correction territory.
Other than the election and lots of retailers reporting earnings this week, there really isn’t too much going on.
A Clinton victory and some good retail guidance will almost assure FOMC action next month and I think the former alone will lead to a buying spree, as will the latter.
I don’t have much going on this week.
Just a single position set to expire and a single ex-dividend position.
If the market decides to continue with a large rally to start the week or in response to the election, I’m more than happy to just go along for the ride.
I wouldn’t mind that being the case and perhaps being in better position the following week to either see some assignments or at least get to do some rollovers.
At this point, I would just like to see some certainty, even if the answers aren’t what I would have wanted to have heard.
Still, 2016 has been good to me and could even get much better with another climb by energy and commodity prices.