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Daily Market Update – September 15, 2016 (7:30 AM) Yesterday was the antithesis of the three previous trading days. For a while it looked as if the market might end the day on a high note. A small one, but a high note, nonetheless. Instead, it retreated in the last hour or so, but still ended up with only a small change on the day. Today looks as if it may be much of the same as we draw nearer and nearer next week’s FOMC meeting. There really wasn’t too much reason after having had the back and forth large moves to end last week and begin this one, to do much of anything until we know what the FOMC’s decision will be. At this point, it looks as if the market will react positively if interest rates aren’t changed and negatively if they are increased. That doesn’t take into account what kind of language the FOMC might use. For example, if they raised the interest rate, but said that it was unlikely that there would be another such increase in 2016, markets would probably celebrate. Either way, there’s likely to be a knee-jerk reaction and then there’s likely to be some settling in as the news, whatever it happens to be, is digested. If in a position to roll some over, I may look at going beyond next week’s expiration date. At this point, I probably wouldn’t mind having more assignments in order to add to cash reserves, but wouldn’t turn down any opportunity to keep positions working by rolling them over. If any of those opportunities present today, I’d gladly take them, rather than waiting for the added uncertainty that tomorrow might bring. . |
