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Daily Market Update – June 9, 2016 (Close) After 3 consecutive days higher, no doubt inspired by the lack of any clarity from Janet Yellen on Monday, the market was getting ready for a rest this morning and it stayed that way throughout the day, ending a 3 day winning streak. As it did, the S&P 500 still sits only about 1% away from its all time closing high. With the greatest likelihood that there will be no interest rate increase being announced next week and investors making it clear that they prefer that to be the case, even as they give some sign of accepting that increase, there isn’t much to hold the market back. Except of course for that pesky thing that so many algorithms and traders use. Charts. Just as the 18000 level on the DJIA has been a barrier, so too is the 2137 level on the S&P 500. People talk about triple tops and the bearish indicator that is, but after some failed attempts the DJIA did get beyond its 18000 level, although it has yet to do so convincingly. The same considerations lies ahead for the S&P 500. With little economic news in the very near term, all we really have ahead is the FOMC meeting next week and then the usual events in the coming month of July. At this point most everyone wants to see whether last week’s Employment Situation Report was simply an aberration and signifying nothing. You can bet that if the next one, or even the GDP comes in big, there will be a big reaction. It may still be a mystery, though, how traders would react. With such bad news last week and the rumblings of that kind of a number being associated with a recession, some may find a strong higher number to be a major disappointment. Who knows? While I’m not trading, I am happy to see asset values climb, particularly as there is a rebound in oil and commodities. Those led me down and now are leading me higher, but I wouldn’t mind getting out of some of those positions at this point and looking for a re-entry opportunity. Otherwise, the week hinges on a sole position set to expire and hoping that it can still be rolled over and milking it for every last bit of premium until its own expiration. With the Baker-Hughes Rig Count coming out at 1 PM tomorrow and with that single expiring position still being within range of both rollover and assignment, and maybe even expiration, I might be inclined to not wait to have the rig count take me out for the count. Ultimately those premiums do add up, so I wouldn’t mind adding some more, but I would still much rather be actively exploring and opening new positions. Still, money is money. |
