Daily Market Update – June 23, 2016 (Close)
Yesterday was another day of investors being either cautious or unwilling to take sides.
No one was particularly interested in what Janet Yellen was saying during her second day of Congressional testimony. Instead, there was some re-found concern about the possibility that Great Britain could vote to actually leave the European Union.
This morning, with still about 10 hours to go until the polls closed and nearly 18 hours before all the votes were expected to be counted, the mood was pretty optimistic that departure wasn’t in the cards.
Who knows where that overnight confidence could possibly come from, but that was the position of things this morning and that optimism never gave up.
In fact, the market traded in a narrow range, albeit nicely higher, until the final hour.
That’s when the market decided to add on even more, with still about an hour until the polls were actually closed.
With only 2 positions due to expire this week and having sold only one new position, along with only 2 ex-dividend positions this week, I’d really like to see some action on Friday, especially as a follow-up to today.
Whether that’s assignment or rollover doesn’t really matter to me at this point. I’d just like to generate some more revenue and would again consider trying to rollover a well in the money position just to milk the steep premium.
I’ve been trying to do that almost all week and haven’t been able to get my price, still shooting for an additional 1% on the rollover, as a guideline for making that kind of a trade.
Otherwise, while I was expecting that it might be another day of watching things, there was an opportunity to sell some calls on an uncovered position, although it was for 3 months ahead.
After seeing what the market ended up doing on the rumor, tomorrow we may end up seeing how the market subsequently reacts to the news.
If Britain decides to stay, the question then becomes one of “so why is anything different, now? Why did we buy stocks for no real net change in what’s going on all around us?”
So if today was “buy on the rumor,” you might logically expect a “sell on the news,” although there could always be those still cautious who decide to jump in and join the party.
That’s when everyone else leaves you holding the bag.