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Daily Market Update – September 26, 2016 (Close) There really isn’t very much happening this week. Earnings are just about over and the FOMC Statement has now been released. What we do have is the release of the GDP on Friday and that may offer the first bit of proof that perhaps an interest rate increase may be warranted. But what we really have this week are 12 speeches by voting and non-voting members of the FOMC. Each of those will believe that he or she holds proprietary rights to the truth, but the real truth is that only the final speaker, Janet Yellen, will matter. The further truth, though, is that she may matter a little bit less, as everyone is just getting more vocal and of their own minds, With 6 of the speeches coming from voting members and the majority of those coming from interest rate hawks, it may be an interesting week of back and forths as the speakers jockey for their spot in the sun. Today, however, what really weighed upon markets were foreign banks, specifically news that Deutsche Bank may not be in line to get any help from the German government in the event that it is short on capital. That weighed heavily on our own banking stocks and it is hard for US markets to move ahead if the financial sector isn’t feeling up to it. That explains some of what we saw today, as the market closed on its lows, never really making any sincere effort to do anything better than a triple digit loss. I have a couple of ex-dividend positions this week and a couple of expiring positions and cash in my pocket. I didn’t feel a great sense of urgency to spend any of that money, but I knew that i could easily get pulled in. And I did, but mostly for more dividend. At the moment, my hope is that the expiring positions end up adding to my cash reserve and making up for the decision to actually spend some money today. I wouldn’t mind a little bit more of a sell-off this week, as long as those 2 positions can still continue to do something worthwhile. Both were hit in today’s sell off, but not to the degree that the market was hit, so we’re still in the running for something. I don’t expect to be doing much of anything this week other than watching the markets possibly gyrate as we wonder when the 0.25% hammer will finally come down on us. 0.25%. That’s what potential panic is all based upon. How strange this market continues to be. |
