Daily Market Update – February 22, 2016 (Close)
This week doesn’t have too much on the economic news front until we get to Friday and the GDP is released.
That report may be more important than usual as last week’s Consumer Price Index was suggesting upward price pressures which could justify an increase in interest rates.
While the CPI’s increase was mostly from health care costs and rents, if the GDP shows much in the way of a consumer led increase in demand, we could be set for the next small interest rate increase.
Based on the way the market has been behaving, that wouldn’t be a very good thing.
This morning, though, the market was behaving as it has for quite some time.
It’s just moving along with oil.
This morning those oil futures were sharply higher and so were stocks, as they dutifully followed without real regard as to the implication of oil getting more and more expensive.
With a little bit of cash generated from last week’s assignment, the very first for 2016 I would have been interested in adding some new positions but not with an impending 200 point gain in the DJIA this morning that became the real thing all throughout the trading session.
There was never even the slightest pretense of erasing the gain that came right out of the chute with the opening bell.
With no ex-dividend positions this week and with no positions to be rolled over nor assigned, I would have liked to have gotten something done, though, to generate some income.
In the meantime, I didn’t mind watching the market continue to go higher, but I would still prefer that it do so like it did last week and take some time to breathe and digest the gains.
Those gains have been considerable over the past week and could use some digesting.
Otherwise, I’m prepared for a quiet week, but would still welcome any opportunity to sell some calls on uncovered positions, even if that continues to mean looking at more distant expiration dates and trying to lock in some volatility enhanced premiums, dividends and maybe some capital gains on those shares, as well.