Daily Market Update – September 13, 2016 (Close)
Yesterday had a very impressive recovery from what was looking as if it was going to be a big opening plunge for the markets.
With 3 Federal reserve Governors speaking, the market improved with each, as there was an increasingly dovish tone, particularly with the final pronouncement.
That came from someone who doesn’t take center stage very often and her dovish words really sent the market much, much higher.
Obviously, the market’s reaction is similar to those who like the idea of nuclear power plants, but not in their backyard.
The market has said that it likes the idea of a small interest rate increase, but now right now, please.
This morning’s futures were again pointing much lower, but there is now a blackout period for the Federal Reserve members and despite yesterday’s hero reinforcing her beliefs today, the market wasn’t buying it or anything else today.
Now, Federal reserve Governors and Presidents can’t say anything in public until after next Wednesday’s FOMC meeting.
Today was another sell off on interest rate fears and it brought us right back to where Friday had left us.
I did make one trade yesterday, going back to that old friend Marathon Oil, but oil continued its deep slide today.
The energy sector, like stocks, had a nice reversal yesterday, but it didn’t last very long, as it started that way as soon as eyes were being opened and it never got any better, unlike yesterday.
I still hold out some hope for selling calls on uncovered positions, but my real hope for the week is to have some assignments and some rollovers.
I’d love the idea of adding to cash reserves right now, just as I like the idea of generating some more revenue to go along with all of this week’s ex-dividend positions.
My guess was that today wouldn’t be the day to do much of anything.
Being right about that brings no solace, though.
And like last week, I wonder if there will be much opportunity for the rest of this week, as everyone will be focused on the following week’s FOMC.
Including me, I think.