Daily Market Update – May 3, 2016 (Close)
Last week wasn’t a very good week unless you were long oil and commodities.
As this morning’s futures were shaping up, it’s hard to know whether to root for oil or against it, if you also have a portfolio with lots of other things.
Yesterday, as the market gained more than 100 points, it did so while moving opposite the direction of oil and commodities.
This morning, it looked as if the market wanted to give back everything in gained yesterday and get reacquainted with an old friend.
Both were moving lower this morning although there isn’t much in the way of news.
In the case of oil, even if you eliminate the supply and demand parts of the equation, you could understand why some would be thinking about taking profits after a nearly 80% gain in 2016.
I know that I’d be tempted, regardless of what the fundamentals were saying.
This week, at least until we get to Friday’s Employment Situation Report, there really isn’t very much to get excited about.
Earnings keep pouring in, but it has been a while since Clorox held the key to anything.
It’s nice that they beat, but they are as systemically important as is Facebook.
Banks, home sellers, retailers and industrials really matter.
Clorox with better than expected earnings?
Not so much.
As it would turn out, oil stayed lower and so did the market, giving back a little more than it gained on Monday.
There was only one basically bright spot today, and that was Apple.
I watched Tim Cook’s interview yesterday evening and wondered who is now telling the truth.
He avowed no such fears about China as did Carl Icahn and I was inclined to put more faith in his statements, as were traders today, even while everything else went south.
With that, I may still consider opening a position in Apple before it is ex-dividend this week, as it gets ready to move beyond 8 straight losing sessions.
Otherwise, even as more bargains may have appeared today, I never felt overly anxious to jump into the water, as I hold on tight to cash until something suggests its reasonably safe to get into the water and easy to get out.