Category Archives: Daily Market Update

Daily Market Update – February 12, 2016 (7:00 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:  BP (2/10 $0.60), IP (2/10 $0.44), MAT (2/12 $0.38), MRO (2/12 $0.05)

The following will be ex-dividend next week: AZN (2/17 $0.30)

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

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Daily Market Update – February 11, 2016 (Close)

The market initially thought that it got Janet Yellen to say what it is that they wanted to hear.

Market investors are now convinced that further interest rate increases have to be off the table for 2016.

The initial reaction to Janet Yellen’s suggestion on Wednesday that such rate increases would be deferred was enthusiastically accepted, until realizing that even a March rate increase wasn’t really off the table.

That lead to a large turnaround in the DJIA, but the broader S&P 500 didn’t end the day faring as badly as the DJIA had done.

This morning, though, as the futures were preparing us for the opening bell, you had your choice of culprits to blame for the large losses looming.

You could point at Janet Yellen, who still had a chance to mollify her comments as she continued her Congressional testimony today.

Or you could blame the meltdown in European banks and the very idea that negative interest rates could be a possibility in more than just Japan.

Of course, there was also that issue of further steep declines in oil this morning and gold soaring past important resistance levels after a couple of years of doldrums.

So you could take your pick.

This was again, then, a day that started out as being very likely to be a day of sitting and watching the various tantrums play themselves out and then seeing who, if anyone, is left standing by the closing bell.

The answer was that no one was really left standing, although yet again the market found a way to bounce fairly higher from its big losses to finally end the day with only a big loss and not a much bigger loss.

So that’s good. Right?

For one, I’m just glad to have gotten some trades in early in the week, although it will remain to be seen whether finally adding a new position yesterday after a prolonged buying boycott was a good idea.

Like lots of other people, I was watching the gyrations as Janet Yellen’s session with Congress was televised and wondering why there is so much uncertainty among those who are supposed to know what they’re doing.

Today didn’t deliver that answer.

I don’t think tomorrow will, either.

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Daily Market Update – February 11, 2016 (7:30 AM)

The market initially thought that it got Janet Yellen to say what it is that they wanted to hear.

Market investors are now convinced that further interest rate increases have to be off the table for 2016.

The initial reaction to Janet Yellen’s suggestion that such rate increases would be deferred was enthusiastically accepted, until realizing that even a March rate increase wasn’t really off the table.

That lead to a large turnaround in the DJIA, but the broader S&P 500 didn’t end the day faring as badly as the DJIA had done.

This morning, though, as the futures are preparing us for the opening bell, you have your choice of culprits to blame for the large losses looming.

You could point at Janet Yellen, who still has a chance to mollify her comments as she continues her Congressional testimony today.

Or you could blame the meltdown in European banks and the very idea that negative interest rates could be a possibility in more than just Japan.

Of course, there’s also that issue of further steep declines in oil this morning and gold soaring past important resistance levels after a couple of years of doldrums.

So take your pick.

This will again, then, likely be a day of sitting and watching the various tantrums play themselves out and then seeing who, if anyone, is left standing by the closing bell.

For one, I’m just glad to have gotten some trades in early in the week, although it will remain to be seen whether finally adding a new position yesterday after a prolonged buying boycott was a good idea.

Like lots of other people, I’ll be watching the gyrations as Janet Yellen’s session with Congress is televised and wondering why there is so much uncertainty among those who are supposed to know what they’re doing.

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Daily Market Update – February 10, 2016 (Close)

Yesterday was another of those days that we’ve seen in 2016 where there was some strength heading into the closing that eliminated all or much of a large loss.

Most of the time, though, in 2016, that hasn’t translated itself into sustained gains. In fact, most of the time it hasn’t even translated itself into gains the next day.

Today looked as if it might end up differently, though, as the futures were trading up by triple digits as a nation turned its lonely eyes to Janet Yellen, who was to give her mandated Congressional testimony today.

She hadn’t been heard from since the FOMC raised interest rates and a lot has happened since then, including questioning whether or not there really is data to have supported that initial rate hike.

The real question was whether the dovish Yellen would re-appear this morning.

The general belief was that the re-emergence of a dovish tone would likely send stocks much higher.

The answer to that burning question was basically “yes and no.”

She basically said that the FOMC was likely to delay any rate hikes in 2016, but not abandon the possibility..

The more hawkish Yellen hasn’t helped things even as her co-Chair, Stanley Fisher has been sounding more dulcet tones.

The dovish Yellen got the DJIA up by nearly 200 points, but when the reality sunk in the day close at its low, although just shy of another triple digit day.

Still, it was in the wrong direction and the S&P 500, which had already been 1.4% in the hole finished lower, but wasn’t weighed down anywhere near as much as the DJIA, which had to contend with the burden of earnings reports.

The real surprise was that while I definitely wasn’t expecting to do much on a personal trading level and would have been ecstatic at any opportunity that could arise during the course of the day, I was thinking about new call sales.

I never thought that I might finally part with some cash and add a new position, but it happened.

Finally.

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Daily Market Update – February 10, 2016 (9:00 AM)

Yesterday was another of those days that we’ve seen in 2016 where there was some strength heading into the closing that eliminated all or much of a large loss.

Most of the time, though, in 2016, that hasn’t translated itself into sustained gains. In fact, most of the time it hasn’t even translated itself into gains the next day.

Today may be different though as the futures were trading up by triple digits as a nation turned its lonely eyes to Janet Yellen, who was to give her mandated Congressional testimony today.

She hasn’t been heard from since the FOMC raised interest rates and a lot has happened since then, including questioning whether or not there really is data to have supported that initial rate hike.

The real question is whether the dovish Yellen will re-appear this morning.

That would likely send stocks much higher if she does show up with that persona.

The more hawkish Yellen hasn’t helped things even as her co-Chair, Stanley Fisher has been sounding more dulcet tones.

So we’ll see what today may yet bring as the S&P 500 is already 1.4% in the hole to begin the week.

I’m not expecting to do much on a personal trading level, but would be ecstatic at any opportunity that could arise during the course of the day.

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