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Daily Market Update – July 18, 2016 (Close) There’s very little economic news this week as were getting ready to see whether all of last week’s multiple new highs would have legs. The following week we do have an FOMC Statement release, but at this point, no one is yet talking about the possibility of an increase in the same way as was the case in the 2 weeks preceding the June 2016 meeting. That may change, but it’s not too clear where the change would be coming from at this point. In the meantime there are no shortage of earnings reports this week and it will be interesting to see if some of the positive tone set by the financials will continue this week or whether anyone will dare to get pessimistic because of Brexit. So far, this week’s important earnings haven’t put a damper on things and the last time I looked, Netflix was about as important as Facebook in the big picture. Today, despite trading in a very narrow range all day long, did manage to add to the gains of last week and inched us a bit more high. With a number of assignments last week I do have more freed up cash to use than has been the case for quite some time, but sitting at all time highs it isn’t easy to just plow it right back into the market. With one expiring position and one ex-dividend position, I would like to generate some more income on the week, so my inclination is to spend some of that money. And I did that today in the same way as has been the case in about 7 of the past weeks over the past 3 months, or so. Since I wouldn’t mind just repeating the trade that has worked for the past months, I was anxious to take advantage of some decline in the price of oil this morning, but otherwise, I didn’t expect to go on anything resembling a spending spree. When at new highs it’s really anyone’s guess as to whether there will be a breakout even higher or saner minds take over and take profits. Human nature often misses the opportunity to take profits because of that basic optimism that leads to greed. I’m as greedy as the next person, but I do like to book profits, whether they’re in the form of share appreciation or lots of dividends and option premiums. With money in hand and with futures pointing to a quiet morning, l took my cue from whatever it was that was to unfold and had no other great expectations for the morning or maybe not even for the week. I certainly don’t mind accumulating some cash, but do mind the possibility of missing any developing or further developing opportunities. Hopefully today’s trade will find a way of adding to that revenue for at least this week and maybe beyond.
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