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.