Daily Market Update – November 29, 2016 (Close)
As the week is getting off to its start, it may look as if this may be a quiet week.
There are, however, a few things that were ahead this week that could have changed the breather from what is being called “The Trump Rally.”
That was the release of today’s GDP and then Friday’s Employment Situation reports.
There’s also the matter of that OPEC meeting that sent oil prices higher, once again in speculation that greedy partners could agree on anything, as we saw again today, may be an over-estimation of their abilities as a cartel.
Most recently, going back to about May, there have been a series of run ups in oil price predicated on that kind of agreement, only to be given back as greed won out.
Where that matters is that for much of 2016 oil and stocks have been closely linked.
At some point, though, maybe now, there will be the realization that in the face of an expanding economy the low price of oil is just great.
That should mean great for stocks, too, as the input price of energy has to be factored into just about every company’s profit and loss statement.
Today’s sharp decline in oil probably held the market back, but not as much as it would have a month or more ago. Maybe it was the revised GDP, now pointing to a 3.2% growth rate, that allowed the market to finish slightly higher,
After yesterday’s unexpectedly busy day of trading, I don’t expect to be doing much else for the rest of the week, other than looking for opportunities to roll over those 3 positions expiring this week and perhaps find some additional call sale opportunities or early rollover candidates.
In the meantime, I’ll just keep an eye on the news and events, as usual, content with this week’s income and wondering why all of 2016 couldn’t have been as busy as this Monday was.
In fact, it’s been more than a year since a typical Monday of trading has occurred, at least on a regular basis.
I don’t expect that will return anytime soon, but nothing in this realm feels better than the activity of trading if coupled with income generation and capital appreciation.
Here’s to 2017.
Maybe a return to earlier times.