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Daily Market Update – March 23, 2016 (Close) When yesterday morning began, there was some reason to suspect that the calm expected for the remainder of this trading shortened week wouldn’t materialize. Somehow, though, markets managed to pull it all together, even as man made disaster was at work. This morning appeared to be another day of calm, although the full reckoning of what such a tragedy means in terms of disruption has probably not been calculated aside from the obvious sectors. The hospitality and travel sectors were in focus yesterday, but other areas of the economy are at risk the longer heightened levels of security have to be maintained. If, however, the rapid recovery in France, from their senseless tragedy nearly a year ago is any template, the recovery is fairly fast, at least on non-human terms. This morning we heard of lock ups and enhanced security in Belgium and likely in other places to come, as well. But life and work continue as the greatest and most overt signs of victory against those that would seek to tear down, intimidate and terrorize. With this morning likely to be a quiet one, I looked forward to having just 2 days left for trading this week, but now, after the day is done, I wish that there were still 2 more days of trading to come. All in all, it wasn’t really a bad day for the market, especially considering that oil dropped nearly 5%. Based on what had been happening with previous large moves, we got off pretty easily. That is unless you had oil or commodities in over-supply in your portfolio, such as having added to your position this week. Ahem. With 2 new positions opened and one set for expiration this week, there was still some chance of more trading opportunity, but it wasn’t going to be too likely that i was going to be adding any new positions at this point. Now it’s certainly less so, but so is the chance of a rollover, as the energy position expiring this week really took a big hit today. With some ex-dividend positions next week, although none this week, there’s a little less pressure to create sources of income, but I’d still like to have that opportunity and wouldn’t be overly resistant. Still, despite volatility dropping, I would also continue to welcome any opportunity to cover some of those uncovered positions, even it continues to mean longer term option expiration dates. Waiting for shares to get assigned is much more palatable if you at least know that there’s some additional premium attached to that position while you do wait. If there are dividends along the way, then even better. However, it does take some marked broad moves higher or relative outperformance by individual positions for that to become the case and this week may not be the week for that to happen. That won’t stop me from watching out for an increasingly rare chance this week, though. . . < /p > |
