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Daily Market Update – October 17, 2016 (7:30 AM) There’s not too much scheduled this week outside of earnings, so we may actually get a chance to focus on fundamentals. There aren’t even very many Federal Reserve speakers this week, so those earnings and especially guidances, may really be front and center. What everyone is looking forward to is a break to the past 6 quarters of sub-par earnings and tepid guiance. I had been looking forward to this week, as it was going to be the successful conclusion to the October 2016 option cycle, but now that “successful” qualifier is at real risk. Barely a week ago I thought most of the week’s expiring positions were likely to either be assigned or rolled over. Now, it doesn’t seem that way, although one of those originally set to expire this week was rolled over last week. Still, that changes things if the expiring positions aren’t going to contribute to my well being this week, even if they might yet again do so. With less prospects for developing rollover revenue from those expiring positions, there may be some need to add to existing positions. However, with minimal prospects of having assignments and replenishing cash, I also have a reluctance to dip into those reserves at a time that I would mind seeing them grow. Such dilemmas. Usually, I spend the money if there is anything that looks remotely attractive and this week will probably be no different. What will also probably be no different is that the trading will likely be sparse, as there is also very little reason to get out ahead of the market on the long side, at a time when there may be need to simply get out of the market. . |
