Daily Market Update – May 12, 2016 (7:30 AM)
Yesterday the market lost 217 of the 222 points it gained the previous day.
I don’t think that the losses by some of the nation’s largest retailers yesterday had any kind of similar offsets the previous day and it’s pretty unclear when those may start getting better.
This morning the early futures are pointing higher, but there isn’t too much reason for any conviction, as they seem to be tied again to oil.
Yesterday, that tie broke, as the overwhelmingly bad news from the retail sector just trumped ebverything else.
There may be more of that to come as more of the retailers are still ahead over the next 2 weeks, but it is hard to imagine that some of them will go much lower, after being taken down by the big wave caused by Macy’s.
I have just a single position that expires this week and after a rocky start it’s fairly well in the money.
However, as I mentioned yesterday, I might be interested in rolling that over, possibly even to s higher strike, if the premiums allow, particularry as there is also a small dividend next week.
Otherwise, it will likely be another quiet day.
If the past year or so is any indication, these sharp losses, as were seen across the board in retail yesterday, will take much longer to recover, than has been the case in the past.
I don’t think I’m going anywhere, although I haven’t checked with my actuary, so I’m prepared to wait.