Daily Market Update – October 12, 2016 (Close)
Yesterday was a surprisingly weak day in the market, coming right after a surprisingly strong day, that happened to see some of its gains lost in the final hour of trading.
There really wasn’t too much reason for either of those moves, as stocks simply followed oil again, as it had done for much of 2016, but not so much recently.
Yesterday was simply a bad day in oil and today, as is usually the case on Wednesday when inventory numbers are released one hour after the opening bell, there could easily be another large shift in prices and sentimernt.
What really may matter though is Friday’s “Rig Count.”
That comes after lots of bank earnings and a Janet Yellen presentation, so Friday could be a big moving day.
If bank earnings and guidance are on the positive side and rig counts are going higher, whatever Janet Yellen’s prepared text may be, there is likely to be some additional emphasis on conditions becoming suitable to sustain an interest rate increase in the near future.
At this point, I think that the immediate and short term response will be a negative one, even though that would be entirely illogical.
What’s logic got to do with anything, anyway.
With yesterday’s oil decline, I sold puts in an old 2016 friend, once again.
By my last count, that’s the ninth time this year and I wouldn’t mind having an opportunity to do it so more as we count down 2016.
With yesterday’s decline, I don’t think there will be too much opportunity to have a week like last, when there was a chance or two to sell calls on uncovered positions, so it looks like a pretty boring week for the next few days.
There is a lone expiring position that was opened yesterday, but I actually wouldn’t mind having the chance to roll that over to the following week.
Next week, as the monthly option comes to its end, a number of positions that appeared to be assignment candidates are suddenly not so with some recent declines, but these days, a week is a long time, so I’ll keep fingers crossed on those, or at least for those to become continuing rollover candidates, as we await and see what this current earnings season will bring.