Daily Market Update – November 26, 2014 (Close)




Daily Market Update – November 26, 2014 (Close)

The weather is miserable on the east coast, including over the New York Stock Exchange and it is the day before Thanksgiving.

That has the makings for another really quiet day, even though some key economic reports are being released today. While there may not be many around to react to those reports these kind of low volume day can become aberrations in terms of the moves seen.

The futures, though, give no indication of anything other than another in a series of very quiet trading days and when it was all over, the futures got it just right.

Although I don’t usually mind if the market stays in a narrow range over an extended trading period, I do like to see days when there are either strong moves higher or plunges lower, as long as they don’t come in a single direction in any kind of sustained period.  

While a series of flat days can leave you with the same net result as a series of flat days with equally sized intervening surges and plunges, the latter is much more preferable, as it increases the volatility and offers some trading opportunities.

For now, the only real opportunity that I would like is to have a chance to take advantage of any surge higher and sell some calls on uncovered positions.

Today was just another day when that kind of hope had no chance of becoming reality.

Lately, it has simply been one flat trading day after another. While there have been a couple of days of rallies in the making, none of them had staying power. That has been especially true for the energy sector, that has had a number of days when it appeared as if there might be some kind of a breakout higher, only to see relatively sudden reversals  across  the board.

Today didn’t look like it would lead to very much trading and my wife must have been fully aware of that, as she left me a list of things that I needed to get done by tomorrow, as somehow the guest list keeps expanding.

While difficult and boring, my mind was still on whatever it was that today might bring. Like yesterday, if any opportunities did arise for early rollovers, I would have liked to take them. That opportunity did come for rolling over the $53 lot of JOY in order to still be able to have a chance at next week’s dividend.

Next week, just as this one, there are a number of positions going ex-dividend and I would like to retain as much of that income as possible, sometimes foregoing option premiums, as the premiums are very low and may not warrant the risk of losing the position.

For now, if you’re in the cold rain or in the snow stay warm and safe in enjoyment of Thanksgiving with friends and family. If you’re traveling today, I hope it is an easy and uneventful trip.

But If you’re someplace nice and warm, set another couple of places. I don’t mind abandoning our guests and letting them fend for themselves.