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Daily Market Update – May 28, 2015 (8:00 AM)
It was hard to understand wat happened on Tuesday, just as it was hard to understand exactly what happened yesterday. Yesterday’s market wasn’t exactly an equal and opposite reaction, but at least it was noticeable in the correction to the previous day. It still, however, doesn’t leave us anywhere other than continuing to be on that big piece of plywood delicately balanced on the head of a nail. The pre-open futures is again poised to offer virtually nothing in the form of direction as getting ready to scan positions this morning. Today brings me one more step closer to a week with no trades, other than the early assignment of one position. While I do like the additional cash, it has been a frustrating week. Although I wasn’t expecting to make many trades and already aware that there was little to be rolled over this holiday shortened week, the very few trades that I’ve tried to make haven’t materialized. Even the one rollover couldn’t get executed yesterday. With just two days left in this week my expectations are low, but it will be very interesting to see how tomorrow’s GDP figure will look, as well as how the markets will react to it. Any suggestion that the economy is heating up, or is on a stronger path than had been earlier indicated, is likely to be met with a bad market reaction. Following Tuesday’s sell off, it may not take much to tip over that perfectly balanced sheet of plywood. With this week being a virtual wasteland and no activity, my eyes are on next week and hoping to be able to do something with the cash on hand as well as something with the few positions already set to expire next Friday. Hopefully the next couple of days will show some more consistency and allow some more strategic planning. The back and forth that we’ve seen over the past few weeks, while occasionally setting some new record highs, isn’t the kind that creates confidence, nor does it create a strong support level for the market to climb even higher. Still, as unhealthy as it seems, you do have to admire the way the market has been able to stick in and respond to every challenge with a new effort to recover. I’m willing to do that, but I’d be much more willing if I could be a much more active participant. That doesn’t look to be the case today or maybe not even tomorrow, but there’s always next week. At least then we have an Employment Situation Report and some FOMC Governors speaking to liven things up a little and maybe even get the futures back into the game.
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