Daily Market Update – October 10, 2016



Daily Market Update –  October 10, 2016 (7:30 AM)

Last week provided some confusing data on the Employment Situation front, but markets were confused all week long.

This week may end up being less confusing, but we may have to wait until Friday to really get any of that clarity.

Friday is the day that the major money center banks release earnings and it will also be the day that the Retail Sales Report is released.

The latter is backward looking, but the former may offer some glimpse into what 2017 may have to offer with regard to economic growth.

After those are all done, then Janet Yellen addresses the Boston Federal Reserve’s conference with a real appropriate topic: “The Elusive Recovery.”

We may get to find out on Friday morning how those big banks feel about their own upcoming business prospects.

A real economic recovery can’t have much chance if the banks don’t lead the way, so Friday morning may be an important one.

If the banks see good things ahead, markets may very well take note, but it’s unclear as to how they may take note.

Based on some of the uneasiness whenever it appeared that an interest rate increase was going to happen sooner rather than later, you could easily envision a market sell-off with any perceived economic strength.

If that’s the case, at some point, you would imagine that cooler heads would prevail, much as they did in February and then help to move the markets beyond their all time highs.

I do have some cash to spend this week, even as I don’t have too much interest in doing so. But when I also look at the fact that there are no ex-dividend positions this week and no positions set to expire, I would then like to create my own opportunities.

With the market pointing toward a moderately positive open this morning, once again my preference for the generation of the weekly income I crave would be through the sale of calls on uncovered positions.

Some sustained moves higher would be very welcome and I would love to recreate last week’s experience.

I should qualify that ad say that I would like to recreate that experience, except without the experience of having opened that speculative new position at precisely the wrong time.