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Daily Market Update – November 15, 2016 (Close) This week could be the beginning of a little bit of a return to normalcy, even as the DJIA may be climbing to new daily closing highs. It did so yesterday and again today, even as the DS&P 500 played a little bit of catch up today trying to narrow its fall behind the pace of the DJIA. A mixed market yesterday ended the day with a relatively narrow trading range that probably served to disappoint many as the early gains were squandered. Today managed to do the opposite as the market finished on an up note after spending quite a bit of time treading water. This morning’s futures weren’t looking to be a very exciting day and there isn’t really too much scheduled for this week, although some important earnings are still coming in as we get ready for an holiday shortened week next week. To no one’s disappointment, the day did end up being pretty boring, but still a good day all in all, if all you do is measure your bottom line. After that, it’s just right around the corner to the next FOMC meeting, as the free markets move interest rates higher, doing the work for the FOMC. I’m happy to have been able to sell some calls on uncovered positions yesterday, but those calls continue what has been the story for about the past 15 months. That is, using longer dated options in an effort to buy some time for price recovery and to scrape together some kind of meaningful premium in the face of low volatility. While that has actually worked well in 2016, I would much rather see a 2017 with lots more trading and the use of more weekly expirations. For now I won’t complain, but may reserve the right to do so once this week comes to an end. At the end of this week sits 8 expiring positions and I would like to have the chance to either see them generate more income or at least contribute to my cash reserves as we head into the FOMC decision and what may still be an irrational market in the face of news. Today at least brought the bottom line to a better position and brought more of those expiring positions into contention. That leaves plenty of opportunity for the rest of the week even if not adding any additional positions. . . |
