Daily Market Update – June 14, 2016 (Close)
The week looked like it may get off to a weaker start as we awaited Wednesday’s FOMC Statement release.
What wasn’t totally expected was just how weak it would get as the market fell back in line with the price of oil, something it hadn’t really done in the past 2 weeks.
There was also the pressure of very weak global markets and the strength of Treasury Notes, but the connection to oil was inescapable yesterday.
The market was sharply lower, then positive and then finished the day sharply lower.
All of that was in perfect concert with oil’s moves.
Today, in the futures trading, oil was again weak, but the market wasn’t as low as it could be.
For a while it looked as if today might end up being just as weak or even weaker than on Monday, but markets did rally somewhat to just end the day as a mediocre one and not one with anything memorable.
Maybe there was a little more focus on interest rates, but we really won’t get any news until tomorrow.
After that event and Janet Yellen’s press conference, attention can then turn to Great Britain and its vote on whether to remain part of the European Union.
That of course will be quickly forgotten as we then move onto something else, like maybe the upcoming Employment Situation Report and how upward revisions could lead to something substantive coming from July’s FOMC meeting.
But there’s still the rest of this week to deal with.
I added more oil in the hopes of continuing to take advantage of those steep premiums.
Even if the timing proves to be wrong, those premiums make it easier to wait until the timing is no longer an issue.
I don’t think that I’ll be spending any more money this week, but you never know.
I’d be very happy to simply generate some rollover income for the week and as with yesterday’s rollover of a deep in the money position, right now, I’d rather take the premiums than take assignment, even as that would add to cash reserves.
Otherwise, there’s probably not much to watch today and maybe even less to do.
Unless there are some big surprises tomorrow, maybe even if only in the words used to describe the economy, there isn’t much reason for any large moves, although reason is usually not necessary.
Tomorrow may be another day for stocks to try and overcome some resistance, if the news is interpreted as being good.
I think that I will just be a bystander.