Category Archives: Daily Market Update

Daily Market Update – July 18, 2016 (7:30 AM)

There’s very little economic news this week as we get ready to see whether all of last week’s multiple new highs have legs.

The following week we do have an FOMC Statement release, but at this point, no one is yet talking about the possibility of an increase in the same way as was the case in the 2 weeks preceding the June 2016 meeting.

In the meantime there are no shortage of earnings reports this week and it will be interesting to see if some of the positive tone set by the financials will continue this week or whether anyone will dare to get pessimistic because of Brexit.

With a number of assignments last week I have more freed up cash to use than has been the case for quite some time, but sitting at all time highs it isn’t easy to just plow it right back into the market.

With one expiring position and one ex-dividend position, I would like to generate some more income on the week, so my inclination is to spend some of that money.

I wouldn’t mind just repeating the trade that has worked for the past month or two if there is some decline in the price of oil this morning, but otherwise, I don’t expect to go on anything resembling a spending spree.

When at new highs it’s really anyone’s guess as to whether there will be a breakout even higher or saner minds take over and take profits.

Human nature often misses the opportunity to take profits because of that basic optimism that leads to greed.

I’m as greedy as the next person, but I do like to book profits, whether they’re in the form of share appreciation or lots of dividends and option premiums.

With money in hand and with futures pointing to a quiet morning, I’ll take my cue from whatever it is that unfolds and have no other great expectations for the morning or maybe not even for the week.

I certainly don’t mind accumulating some cash, but do mind the possibility of missing any developing or further developing opportunities.

Daily Market Update – July 15, 2016 (8:45 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:  CSCO, CY

Rollovers:   IP

Expirations:  M, MRO (puts), WY

The following were ex-dividend this week:  none

The following are ex-dividend next week:  FAST (7/22 $0.30)

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

Daily Market Update – July 14, 2016 (Close)

This morning’s futures trading was suggesting that maybe a blowout could be in the cards.

It wasn’t really a blowout kind of day today, but the day’s gains just added more and more to the new closing record.

I would have liked more than a single day’s respite before continuing the climb higher, as would most technicians, although who’s going to say no to more gains, unless you’re just out and out short on stocks.

Although if you’re buying stocks now and there is a blowout in store, as long as you can recognize that those blowouts don’t usually end well for those climbing aboard, then the blowout can be a good thing.

As long as you jump off soon enough.

Even as the morning’s gains were pared by almost half heading into the opening bell, the DJIA futures were pointing another 100 points higher and by the close it did even better than that.

The decline in the increase came as the Bank of England didn’t lower interest rates, however, it did hint that it would introduce some more easing in August.

In the meantime, the preliminary numbers from JP Morgan were good, although there has not yet been the opportunity to hear their forecasts of a British-less European Union.

For my part, heading into the close of the option cycle, the gains are good.

With some gains today I wanted to look at any opportunity of selling calls on uncovered positions, particularly as earnings loomed, but was just happy to sit and watch.

I wouldn’t mind extending ownership of those positions through the use of longer term options to avoid any earnings risk and to perhaps get another dividend or two out of some of those positions.

In the meantime, there are still some more Federal Reserve Governors set to speak, although the market hasn’t been paying too much attention.

That may be a good thing and maybe would drive them back a bit into the shadows, but that’s not likely to happen once you’ve gotten a taste of the attention.

Daily Market Update – July 14, 2016 (8:00 AM)

This morning’s futures trading was suggesting that maybe a blowout could be in the cards.

I would have liked more than a single day’s respite before continuing the climb higher, as would most technicians.

Although if you’re buying stocks now and there is a blowout in store, as long as you can recognize that those blowouts don’t usually end well for those climbing aboard, then the blowout can be a good thing.

As long as you jump off soon enough.

Even as the morning’s gains were pared by almost half heading into the opening bell, the DJIA futures were pointing another 100 points higher.

The decline in the increase came as the Bank of England didn’t lower interest rates, however, it did hint that it would introduce some more easing in August.

In the meantime, the preliminary numbers from JP Morgan were good, although there has not yet been the opportunity to hear their forecasts of a British-less European Union.

For my part, heading into the close of the option cycle, the gains are good.

With some gains today I may want to look at any opportunity of selling calls on uncovered positions, particularly as earnings loom.

I wouldn’t mind extending ownership of those positions through the use of longer term options to avoid any earnings risk and to perhaps get another dividend or two out of some of those positions.

In the meantime, there are still some more Federal Reserve Governors set to speak, although the market hasn’t been paying too much attention.

That may be a good thing and maybe would drive them back a bit into the shadows, but that’s not likely to happen once you’ve gotten a taste of the attention.

MONDAY:   This morning’s futures are telling us that we are in store for a new all time record high, but we have to have it tested first. Sometimes it takes a couple of those tests to really mark a new high and to go well beyond

TUESDAY:   After breaking the all time record high yesterday, it looks as if the market isn’t interested in testing the old high and instead looks to move even higher. Sometimes when it seems that there are absolutely no good reasons to head in any particular direction, that is the only direction that makes sense.

WEDNESDAY:  More all time record highs, but today may be the time for a healthy break in the action

THURSDAY:  Yesterday’s pause looks like it’s giving way to another step toward a breakout as the monthly option cycle comes to an end tomorrow

FRIDAY:.