Daily Market Update – October 12, 2016



Daily Market Update –  October 13, 2016 (7:30 AM)

Yesterday was a surprisingly flat day after a surprisingly weak day.

Once the FOMC Meeting minutes were released, which showed that there was a fairly strong contingent of voting members who believed that we were ready for an interest rate hike, I thought that the market might vote with its feet.

That’s especially the case as word came yesterday that retailers are getting ready for the Christmas season and are having a hard time finding seasonal employees, despite offering better wages than last season.

No doubt that is an inflationary pressure, the kind that has to be factored into the consumer equation.

Maybe the reaction is going to be delayed, as the futures this morning had been showing triple digit weakness.

At some point, all of this will be over, just as it was last year, except that we may still be placed into that waiting phase, where we again wonder when the next and the next interest rate increase will come, as now the expectation is for multiple, yet small increases in 2017.

That same expectation for 2016, which has yet to materialize has been a burden and also a gift when the expected hasn’t materialized.

With one position set for expiration this week, I’d actually give some thought to rolling it over, even if in the money, if I can add another 1% ROI to the bottom line on that position.

With some cash available for next week, as well as some income producing possibilities with some potential rollovers, I don’t mind adding to that list.

With bank earnings beginning tomorrow, the Retail Sales Report and Janet Yellen speaking, in addition to the Rig Count, tomorrow may be a big day, but let’s get through today first.