Daily Market Update – June 16, 2016 (Close)
Yesterday was in sharp contrast to the way the previous day came to its close.
Today was in sharp contrast to itself.
Yesterday, immediately after Janet Yellen’s press conference concluded, the market sold off what modest gains it had made and ended the day lower.
While she spoke, the market pretty much treaded water. It had rallied upon the release of the FOMC Statement, but then really didn’t know what to make of the increasingly dovish tone adopted by Yellen and it just traded in a narrow range through the prepared text and the question and answer period.
But when it all ended came the realization that if the economy wasn’t good enough to support even a 0.25% interest rate increase, maybe it’s not good enough to be a place to park your money.
If your job was to record events, the uptick and the downturn were very easily identifiable as were their causes.
Today, the change, from a decidedly negative open to a close just off of its decideldly positive highs wasn’t as easy to pinpoint as to its catalyst.
This morning’s futures were just modestly weaker as overseas markets had a rough session and oil is again falling.
Using those as guides, we were looking to open on the negative, but still faring far better in comparison to others around the world.
When the end came, that distinction to what was going on elsewhere was cemented and gave a little bit of hope for me as far as tomorrow’s monthly ending option cycle goes.
My aspirations are still meek, though.
I would just like to rollover a position or 2 or see an assignment or two.
With a number of losing sessions having been strung together before today’s surprising gain, those aspirations are getting a little more difficult, but as the market’s recent weakness has driven volatility higher, there may at least be some opportunity to get some relatively larger premiums and look at longer term expiration dates to lock in those premiums while awaiting what is hopefully coming.
Hopefully, tomorrow will see it fit to add a little more to today’s gains and make July a little easier to swallow.