Daily Market Update – April 29, 2015




Daily Market Update – April 29, 2015  (8:30 AM)


I don’t know what the outcome of the GDP Report and the FOMC Statement release will be but the Twitter debacle last night may still keep people’s attention for a while.

Like most news, though, even the most highly significant economic news, it will be forgotten as soon as the next bit of news comes forward.

So today will have two potentially very significant events and still more earnings to come.

Those earnings reports will be slowing down significantly once this week is over. At that point every one will try to interpret what the meaning of the past earnings season had been and what the prospects are for the coming quarter.

For now, the theme appears to not be ready to change any time soon. The dollar is strong and oil prices, despite rallying higher, are still low.

While this quarter was characterized by higher EPS data, but on lower top line revenue, as long as corporate buy backs continue into the next quarter, there may be some offset for the adverse impact of a strong dollar.

What may be different the next quarter is that if low energy prices do continue we may see the kind of consumer led expansion of the GDP that we’ve been waiting for since the beginning of 2015.

This morning the expectation is for another set of disappointing GDP statistics, so we’ll see where that leads if materialized or where a surprise may lead if expansion is finally noted.

With enough new positions opened this week to keep me happy and generating some weekly income, I’d like to see prices strengthen a little bit more to have a better opportunity to see those positions set to expire this week either be assigned or get rolled over.

While I didn’t expect to make any new position trades yesterday, but did so, my expectations are even lower today, as they are on most Wednesdays when focus really turns to managing existing positions to close out the week or be put into position for subsequent weeks.

With today’s big economic news there’s even more reason to just be a casual observer at the ready to sell calls on existing positions if the opportunity arrives, but not to put more cash at risk.

Something always needs to be held back in the event that real opportunity appears in the event of anything that’s going to be construed as bad news, especially if it has some staying power, or leads to the next mini-correction.