Daily Market Update – July 28, 2016 (Close)
Yesterday the market did something differently.
It actually closed off from its highs of the day.
Those highs weren’t really any higher, but the market did rally after its knee jerk reaction to the FOMC’s non-action, but then in the final minutes of the day, the selling hit and the market ended the day just below the break-even line.
This morning there was nothing really on tap and the futures seemed to be reflecting that case. By the time today came to its end, the market was well off from its lows, but did retreat a little bit to finally close with a small loss signifying nothing.
With yesterday’s FOMC Statement release, the expectation is that there is less than an even chance of the FOMC finally finding a reason to raise rates in 2016.
This Friday there’s a GDP release and there could be a start to the kind of data that could move the FOMC into action.
What the FOMC did do a few months ago was to leave open the possibility that they could make a decision without having a regularly scheduled meeting required to do so.
That could mean August or at anytime between meeting as we now have 5 months left to go in 2016 and the expectations for multiple rate rises in 2016 have withered.
The expectation for the remainder of 2016 is that those expectations continue to be withered, although a single rate rise wouldn’t bring much back to life.
This morning markets continued to be flat as Facebook once again showed that it’s not ready to pick up the mantle once held by the likes of IBM, Microsoft and even Apple.
While Facebook was up strongly after last night’s earnings, it isn’t a stock to move markets, as the others once could.
For now, the earnings have been good enough, but it appears as oil is again taking center stage.
Since I have 2 oil positions expiring this week, I hope that the next day does something to breathe a little bit of life back into oil.
Otherwise, it’s already time to start looking forward to the following week and hoping for even more opportunities to sell calls on some existing uncovered positions as was again the case offered yesterday.
More of that could make all of this worthwhile.
Being able to sell some more calls on another of the uncovered positions also made today a little more worthwhile, but I wasn’t able to get rollovers done for the two expiring oil positions.
Maybe tomorrow and if so, that will bring a good week to an even better end.