Category Archives: Daily Market Update

Daily Market Update –  October 17, 2016 (Close)

There’s not too much scheduled this week outside of earnings, so we may actually get a chance to focus on fundamentals.

There aren’t even very many Federal Reserve  speakers this week, so those earnings and especially guidances, may really be front and center.

What everyone is looking forward to is a break to the past 6 quarters of sub-par earnings and tepid guidance.

I had been looking forward to this week, as it was going to be the successful conclusion to the October 2016 option cycle, but now that “successful” qualifier is at real risk.

Barely a week ago I thought most of the week’s expiring positions were likely to either be assigned or rolled over.

Now, it doesn’t seem that way, although one of those originally set to expire this week was rolled over last week and I did get to roll over another position today, once again going long, by adding another month onto the existing contract.

Still, that changes things if the expiring positions aren’t going to contribute to my well being this week, even if they might yet again do so.

With less prospects for developing rollover revenue from those expiring positions, there was some need to add to existing positions. However, with minimal prospects of having assignments and replenishing cash, I also had a reluctance to dip into those reserves at a time that I would mind seeing them grow.

Such dilemmas.

Usually, I spend the money if there is anything that looks remotely attractive and this week would probably be no different.

It wasn’t, as I went back yet again to the well, more precisely the oil well, and repeated the trade of last week and some 8 other times in 2016.

What will probably be no different is that the trading during the rest of the week will likely be sparse, as there is also very little reason to get out ahead of the market on the long side, at a time when there may be need to simply get out of the market.

With a new position and a roll over already, along with one ex-dividend position, maybe I should call it a week.

While the market was exceptionally flat through most of the day, there’s still some hope for something good to hit the tape as companies report this week and may give markets a reason to be optimistic.

Today wasn’t really that day, as Netflix isn’t yet a market leader and IBM continues to not crush it, as it claimed victory by reporting flat revenues.

That’s been the story for lots of companies for far too long.

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Daily Market Update –  October 17, 2016 (7:30 AM)

There’s not too much scheduled this week outside of earnings, so we may actually get a chance to focus on fundamentals.

There aren’t even very many Federal Reserve  speakers this week, so those earnings and especially guidances, may really be front and center.

What everyone is looking forward to is a break to the past 6 quarters of sub-par earnings and tepid guiance.

I had been looking forward to this week, as it was going to be the successful conclusion to the October 2016 option cycle, but now that “successful” qualifier is at real risk.

Barely a week ago I thought most of the week’s expiring positions were likely to either be assigned or rolled over.

Now, it doesn’t seem that way, although one of those originally set to expire this week was rolled over last week.

Still, that changes things if the expiring positions aren’t going to contribute to my well being this week, even if they might yet again do so.

With less prospects for developing rollover revenue from those expiring positions, there may be some need to add to existing positions. However, with minimal prospects of having assignments and replenishing cash, I also have a reluctance to dip into those reserves at a time that I would mind seeing them grow.

Such dilemmas.

Usually, I spend the money if there is anything that looks remotely attractive and this week will probably be no different.

What will also probably be no different is that the trading will likely be sparse, as there is also very little reason to get out ahead of the market on the long side, at a time when there may be need to simply get out of the market.

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Daily Market Update –  October 14, 2016 (7:30 AM)

The Week in Review will be posted by 10 PM and the Weekend Update will be posted by Noon on Sunday.

The following trade outcomes are possible today:

Assignments: none

Rollovers: MRO puts

Expirations:   none

The following were ex-dividend this week:    none 

Trades, if any, will be attempted to be made prior to 3:30 PM EDT

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Daily Market Update –  October 13, 2016 (Close)

Yesterday was a surprisingly flat day after a surprisingly weak day.

Once the FOMC Meeting minutes were released, which showed that there was a fairly strong contingent of voting members who believed that we were ready for an interest rate hike, I thought that the market might vote with its feet.

That’s especially the case as word came yesterday that retailers are getting ready for the Christmas season and are having a hard time finding seasonal employees, despite offering better wages than last season.

No doubt that is an inflationary pressure, the kind that has to be factored into the consumer equation.

Maybe the reaction was going to be delayed, as the futures this morning had been showing triple digit weakness.

The market did acquit itself pretty well, though, coming back from a nearly 200 point loss to finish the day not even 50 points lower.

But tomorrow does beckon.

At some point, all of this will be over, just as it was last year, except that we may still be placed into that waiting phase, where we again wonder when the next and the next interest rate increase will come, as now the expectation is for multiple, yet small increases in 2017.

That same expectation for 2016, which has yet to materialize has been a burden and also a gift when the expected hasn’t materialized.

With one position set for expiration this week, I’d actually give some thought to rolling it over, even if in the money, if I can add another 1% ROI to the bottom line on that position. 

And I did try to get that rollover done today, but I may have been just a little too greedy.

With some cash available for next week, as well as some income producing possibilities with some potential rollovers, I don’t mind adding to that list.

With bank earnings beginning tomorrow, the Retail Sales Report and Janet Yellen speaking, in addition to the Rig Count, tomorrow may be a big day,.

Daily Market Update –  October 13, 2016 (7:30 AM)

Yesterday was a surprisingly flat day after a surprisingly weak day.

Once the FOMC Meeting minutes were released, which showed that there was a fairly strong contingent of voting members who believed that we were ready for an interest rate hike, I thought that the market might vote with its feet.

That’s especially the case as word came yesterday that retailers are getting ready for the Christmas season and are having a hard time finding seasonal employees, despite offering better wages than last season.

No doubt that is an inflationary pressure, the kind that has to be factored into the consumer equation.

Maybe the reaction is going to be delayed, as the futures this morning had been showing triple digit weakness.

At some point, all of this will be over, just as it was last year, except that we may still be placed into that waiting phase, where we again wonder when the next and the next interest rate increase will come, as now the expectation is for multiple, yet small increases in 2017.

That same expectation for 2016, which has yet to materialize has been a burden and also a gift when the expected hasn’t materialized.

With one position set for expiration this week, I’d actually give some thought to rolling it over, even if in the money, if I can add another 1% ROI to the bottom line on that position.

With some cash available for next week, as well as some income producing possibilities with some potential rollovers, I don’t mind adding to that list.

With bank earnings beginning tomorrow, the Retail Sales Report and Janet Yellen speaking, in addition to the Rig Count, tomorrow may be a big day, but let’s get through today first.