Category Archives: Daily Market Update

Daily Market Update – September 26, 2016 (Close)

There really isn’t very much happening this week.

Earnings are just about over and the FOMC Statement has now been released.

What we do have is the release of the GDP on Friday and that may offer the first bit of proof that perhaps an interest rate increase may be warranted.

But what we really have this week are 12 speeches by voting and non-voting members of the FOMC.

Each of those will believe that he or she holds proprietary rights to the truth, but the real truth is that only the final speaker, Janet Yellen, will matter.

The further truth, though, is that she may matter a little bit less, as everyone is just getting more vocal and of their own minds,

With 6 of the speeches coming from voting members and the majority of those coming from interest rate hawks, it may be an interesting week of back and forths as the speakers jockey for their spot in the sun.

Today, however, what really weighed upon markets were foreign banks, specifically news that Deutsche Bank may not be in line to get any help from the German government in the event that it is short on capital. That weighed heavily on our own banking stocks and it is hard for US markets to move ahead if the financial sector isn’t feeling up to it.

That explains some of what we saw today, as the market closed on its lows, never really making any sincere effort to do anything better than a triple digit loss.

I have a couple of ex-dividend positions this week and a couple of expiring positions and cash in my pocket.

I didn’t feel a great sense of urgency to spend any of that money, but I knew that i could easily get pulled in.

And I did, but mostly for more dividend.

At the moment, my hope is that the expiring positions end up adding to my cash reserve and making up for the decision to actually spend some money today.

I wouldn’t mind a little bit more of a sell-off this week, as long as those 2 positions can still continue to do something worthwhile.

Both were hit in today’s sell off, but not to the degree that the market was hit, so we’re still in the running for something.

I don’t expect to be doing much of anything this week other than watching the markets possibly gyrate as we wonder when the 0.25% hammer will finally come down on us.

0.25%.

That’s what potential panic is all based upon.

How strange this market continues to be.

Daily Market Update – September 26, 2016 (8:30 AM)

There really isn’t very much happening this week.

Earnings are just about over and the FOMC Statement has now been released.

What we do have is the release of the GDP on Friday and that may offer the first bit of proof that perhaps an interest rate increase may be warranted.

But what we really have this week are 12 speeches by voting and non-voting members of the FOMC.

Each of those will believe that he or she holds proprietary rights to the truth, but the real truth is that only the final speaker, Janet Yellen, will matter.

The further truth, though, is that she may matter a little bit less, as everyone is just getting more vocal and of their own minds,

With 6 of the speeches coming from voting members and the majority of those coming from interest rate hawks, it may be an interesting week of back and forths as the speakers jockey for their spot in the sun.

I have a couple of ex-dividend positions this week and a couple of expiring positions and cash in my pocket.

I don’t feel a great sense of urgency to spend any of that money, but I could easily get pulled in.

At the moment, my hope is that the expiring positions end up adding to my cash reserve.

I wouldn’t mind a little bit of a sell-off this week, as long as those 2 positions can still continue to do something worthwhile.

I don’t expect to be doing much of anything this week other than watching the markets possibly gyrate as we wonder when the 0.25% hammer will finally come down on us.

0.25%.

That’s what potential panic is all based upon.

How strange this market continues to be.

Daily Market Update – September 23, 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: none

Expirations:   none

The following were ex-dividend this week:    LVS (9/20 $0.72)

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

.

Daily Market Update – September 22, 2016 (Close)

The market moved about 160 points higher yesterday as the FOMC announced that there wouldn’t be an interest rate increase.

At least right now.

The market, did as it had done other times, it seemed to accept the fact that there wouild be an interest rate ahead, as the FOMC hinted very strongly that there was room and time for such a hike still in 2016.

Actually, it didn’t do any of that until Chairman Yellen’s press conference.

Up until that point traders were trying to figure out what to do and actually reversed their initial knee jerk reaction which had returned the market to its opening highs and took it to its intra-day lows.

The Chairman’s words were the ones that soothed, as the market went higher as she recited her prepared text and then continued during the question and answer period and continued right until the closing bell.

Investors also got some good news from the Bank of Japan, which basically admitted that a negative interest rate environment had not been working.

For some here in the United States, there was still a fear that negative interest rates could have become the Federal Reserve’s next weapon.

So the market celebrated and there may be as many as 3 more months ahead, but it has been clear that whenever the market believes that there might be a chance of an interest rate increase in the near term, it doesn’t like the idea.

With the FOMC strongly suggesting that there was still time for an interest rate increase in 2016, we’ll see what happens as we draw near.

While most interpret that to mean December, there is nothing sacred to prevent an increase from being implemented before then.

That would likely get investors upset, even if the underlying economy was in good enough health to support that increase.

In the meantime all eyes will be focused on whatever economic reports might justify that increase.

Best of all, however, would be some cheery guidance coming from companies as earnings season starts all over again in about 3 weeks.

I suspect that there will be little for me to do for the rest of this week, with no expiring positions to think about.

Maybe another residual rally tomorrow, just as we had today, may give some opportunity for call sales on uncovered positions, but as has been the case for much of 2016, I’m happy just going for the ride and catching any opportunity that might come along.

.

Daily Market Update – September 22, 2016 (7:30 AM)

The market moved about 160 points higher yesterday as the FOMC announced that there wouldn’t be an interest rate increase.

At least right now.

The market, did as it had done other times, it seemed to accept the fact that there wouild be an interest rate ahead, as the FOMC hinted very strongly that there was room and time for such a hike still in 2016.

Actually, it didn’t do any of that until Chairman Yellen’s press conference.

Up until that point traders were trying to figure out what to do and actually reversed their initial knee jerk reaction which had returned the market to its opening highs and took it to its intra-day lows.

The Chairman’s words were the ones that soothed, as the market went higher as she recited her prepared text and then continued during the question and answer period and continued right until the closing bell.

Investors also got some good news from the Bank of Japan, which basically admitted that a negative interest rate environment had not been working.

For some here in the United States, there was still a fear that negative interest rates could have become the Federal Reserve’s next weapon.

So the market celebrated and there may be as many as 3 more months ahead, but it has been clear that whenever the market believes that there might be a chance of an interest rate increase in the near term, it doesn’t like the idea.

With the FOMC strongly suggesting that there was still time for an interest rate increase in 2016, we’ll see what happens as we draw near.

While most interpret that to mean December, there is nothing sacred to prevent an increase from being implemented before then.

That would likely get investors upset, even if the underlying economy was in good enough health to support that increase.

In the meantime all eyes will be focused on whatever economic reports might justify that increase.

Best of all, however, would be some cheery guidance coming from companies as earnings season starts all over again in about 3 weeks.

I suspect that there will be little for me to do for the rest of this week, with no expiring positions to think about.

Maybe any residual rally today or tomorrow may give some opportunity for call sales on uncovered positions, but as has been the case for much of 2016, I’m happy just going for the ride and catching any opportunity that might come along.

.