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Daily Market Update – November 2, 2016 (Close) There was still reason to believe that this would be a busy week, on paper, at least. Unlike the start to the week, yesterday was far from boring, but it wasn’t really anything related to the economy or to business that stimulated selling. It was another round of fear over the election results. Today was the same as there was some evidence that the Presidential race may be closer than most anyone thought it might be. The investor class clearly doesn’t like the idea that a billionaire non-politician could end up as the leader of the free world. Next Wednesday morning can’t come soon enough. Yesterday’s sell-off wasn’t as bad as it was heading to be, as the market did make back about half of its losses by the close. That’s usually a good sign, but this morning there was no indication of a continuing rebound in the futures market. With the week coming to its mid-point and the FOMC meeting this afternoon culminating in its statement release, there was little reason to get ahead of the announcement, other than in a defensive way. I would certainly have taken an opportunity to sell calls into strength prior to that announcement, but could see no reason to part with cash. It wasn’t really likely that anything good would come out of today’s meeting as far as market sentiment is concerned. Any wording that was hawkish may have sent sellers selling as they will feel that time is really now running out to take profits, while dovish words would possibly make people wonder just how bad the economy really was, even as we start seeing signs of awakening. I tried to keep myself awake as it was getting ready to wind, but there didn’t appear to be much trading action in the forecast, even as yesterday’s call sale was a nice surprise. With the FOMC ultimately saying nothing, the only news for the day really turned out to be those election polls and a nap would have been the smartest thing to have done today. There’s always tomorrow. . |
