Daily Market Update – March 28, 2016 (Close)
With markets re-opening today after celebration of Good Friday, much of the world’s markets were still closed for Easter Monday.
Last week, there was almost no economic news to have to think about, but instead everyone was focused on the horrible events in Brussels and now we began the week wondering about more tragedy in Pakistan, only to have the afternoon interrupted by a brief scare in the US Capitol.
But through it all, the market barely budged today, taking its cue from last week’s dispassionate trading.
Somehow markets were able to essentially ignore last week’s non-economic news and when faced with the news that the GDP, which was announced on Friday as markets were closed, was better than expected, still refused to act or react in an . overboard fashion.
This week we will have the monthly Employment Situation Report and another good month, especially if coupled with some increasing wage growth, could signal that some of the disparate voices among the Federal Reserve may be right.
What they may be right about is that the economy warrants an increase in interest rates now, rather than later.
That may be somewhat different from the message Janet Yellen had recently sent, as the Federal Reserve Governors are getting less and less reserved about voicing their opinions, even when perceived as counter to the Chairman.
The once unquestioned Chairman.
This week looked as if it would get started where so many recent trading sessions have begun the day.
Flat. And it stayed that way the entire day, trading in less than a 100 point range on the DJIA.
While we do await Friday’s news there will be plenty of opportunities to hear from some of those Federal Reserve people, so we’ll see what they can stir up.
In the meantime, if the Employment Situation Report numbers are strong, we may find out fairly soon whether we’re back to good news being bad and bad news being good.
Also, last week gave some indication that stocks and oil may be easing up their tight association of late, so we’ll see whether the market can continue to withstand any of the recent weakness in oil. Today, some of that disassociation continued.
My goal this week is like most.
I just want to generate some income.
With some ex-dividend positions this week and an expiring position, I wouldn’t mind opening some new positions, but feel less of the need to do so.
As has been the case for what seems like the longest time, I’d love to see some market rally bring some uncovered positions closer to getting some cover and making them contributing members to the portfolio.
With lots of energy positions that has been a difficult goal, but as long as fundamentals don’t seem to matter in the energy sector, there’s always that chance.
For now, I hope that stocks and energy continue traveling together just to have some of those income opportunities spread more broadly, but I expect that this week will end up being a fairly quiet one from a personal trading perspective.