Daily Market Update – October 3, 2016 (Close)
Last week saw 5 days with triple digit moves, yet the market itself only ended with a net 0.2% gain.
There was, clearly, no theme last and no pattern.
This week will come to an end with a release of the Employment SItuation Report and there may be significant reason for the market to feel that it must react in a big way.
There was some hint last week that the market, although it had previously indicated that it would accept the idea of a December rate hike, wasn’t all that interested in really doing so.
The first bit of data to support the idea of an improving consumer led economy, the GDP, wasn’t well accepted, as it showed some surging consumer participation.
So this week’s Employment SItuation Report, if indicating a strong number or having upward revisions to the past, could be a real test.
With some cash freed up last week, I had money to spend, but just like the market, which was pointing toward a flat open this morning to start the week, I was and am still pretty tentative, at best.
With only 2 ex-dividend positions for the week and no positions set to expire, I wouldn’t have minded finding a place to park some money, but was planning to remain cautious.
At least in words, if not deeds, as it turns out I was anything but cautious in deeds.
Maybe caution will return tomorrow, but i was pretty satisfies with today.
With the start of the new quarter, we begin earnings season next week and we may finally get to that point that companies may find reason to start getting more optimistic as they provide guidance.
If looking for a catalyst to move higher, it has been a long time since fundamentals were responsible.
Otherwise, though, there’s really nothing else on the horizon that could give the market a reason to break old highs.
Again, I don’t expect to do much trading this week, especially after 2 trades this morning, but would gladly take any additional opportunities that might come along, especially if they helped to put some existing positions to work.