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Daily Market Update – July 13, 2016 (7:30 AM) This morning’s futures trading is finally suggesting that it’s time to take a rest from the strong climb that has been underway for about 10 trading sessions. From the Brexit lows, the climb has been pretty steep, but this morning everything is at the flat line as we still have lots more to hear from members of the Federal reserve, who are on a whirlwind talking spree this week. So far, they haven’t said much. With 2 nice gains to start the week the July 2016 option cycle comes to its end in just 3 trading sessions. Yesterday was one of those rare days that just about every sector was higher and some were nicely higher. As we get closer to the end of the monthly option cycle we will have the real beginning of the earnings season to contend with. That now starts with JP Morgan, rather than Alcoa, which has already reported. JP Morgan may hold the key for everyone else based on how it projects the Brexit vote to impact it’s businesses in the coming years. For its part, whether out of social consciousness or maybe great business results, JP Morgan announced a large salary increase for its lowest paid earners, up to about 60%. Maybe that’s a prelude to what may be very good current operations, but investors are more likely to focus on future prospects, particularly how they may be impacted by the British vote. For my part, it’s likely to be more sitting around. I did try to rollover the Marathon Oil short call position expiring this Friday, just as I considered closing the short put position. I’m still of the mind to keep the call position open, even if assignment is in the cards, as I wouldn’t mind creating that 1% weekly annuity and may look for some more opportunity today. |
