Daily Market Update – June 13, 2016




Daily Market Update – June 13, 2016 (7:30 AM)

The week looks like it may get off to a weaker start as we await Wednesday’s FOMC Statement release.

There’s not likely to be any movement on interest rates coming out of that meeting, although lots of attention is also paid to any slight nuances that may come from changed wording.

More importantly, though, may be the tone taken by Chairman Yellen during her press conference later on Wednesday afternoon.

While we await those events, the Asian markets were down 3% overnight and oil is down again this morning, as it had difficulty with the $50 level, just as the DJIA and S&P 500 had difficulty with the 18000 and 2100 levels, respectively.

WIth a few positions set to expire this week, I just hope to be able to put them to work if they’re not assigned.

For some of those positions that seems unlikely, so it may be back to looking at some longer term time frames in an effort to buy time and get paid for doing so.

In the event that Wednesday becomes a non-event, oil may again become prominent in our markets and if the association continues, it wouldn’t be too surprising to see oil take a break, even as summer demand may be increasing.

In the meantime, with each passing day over the next week or so, there can also be lots more attention being paid to Great Britain’s upcoming vote on its EU membership.

There’s lots of hyperbole on that topic and it’s anyone’s guess what that might due to international markets and our own.

With just a little bit of discretionary cash and some uncertainty this week, I’m not entirely convinced that I’ll be opening any new positions this week, although I still might like to add an oil position, despite being over-invested in that sector.

That may be a place, that even if wrong about the near term direction of its movement, the option premium is so large, and the option market generally so liquid, that there may not be too much difficulty riding out any short term storm.

Otherwise, this may be another week of being a passive bystander and maybe just hoping that asset value climbs as the market tries to figure out what is really important.