Daily Market Update – August 3, 2016 (7:30 AM)
Yesterday made it 7 straight days of losses and it’s still barely noticeable, despite a larger than lately kind of loss to close the day.
This morning futures are again lower, but only mildly so and oil is heading higher.
Yesterday the market did seem to take its cues from oil and when the oil rally faded, so too did the market start its own sell off.
That sell off wasn’t steep enough to be enticing in any way and it only served to make it more difficult to find any way to sell calls on uncovered positions.
Retailers were hit especially hard yesterday in what made little sense.
Perhaps that should have been the case when last Friday’s GDP data was released, or perhaps that should be the case when this Friday’s Employment Situation Report is released.
Or maybe it should just wait until retailers are about to begin their earnings announcements over the following couple of weeks.
But no, it was yesterday and they fell well out of proportion to the rest of the declining market, despite likely having no reason to follow oil lower.
Today’s futures may be pointing to an eighth consecutive day lower, but the decline is very slight.
I don’t see many trading opportunities today, so it will likely be a day of standing by and waiting for a surprise that won’t come.