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Daily Market Update – December 5, 2016 (7:30 AM) The week looks as if it wants to get back to the Trump Rally. Futures are showing a decent gain and there really don’t appear to be any headwinds, even as the FOMC is getting ready to announce their first interest rate cut in a year. It would also be only the second rate increase in about 10 years, even as we were expecting multiple rate hikes this year. Now that expectation is for 2017. At the moment, the stock market seems to be reacting precisely the same way it did last year. But if it follows what id did last year, then a week or two after the rumor becomes news, it may be a good time to be positioned to pick up some bargains. I’m at my highest cash position in quite some time and have enjoyed a really good 2016. Being more and more in cash means that some of that really good year has been realized and not just on paper. Of course, it also means potentially missing out some on any more rally that may await. I do think that there’s more ahead, but this time I think that it may finally be corporate earnings that will move us forward, or at least offset whatever fear may hit investors if multiple rate hikes become a concern. With cash in hand, multiple ex-dividend positions and a couple of positions expiring this week, I’m in a good position. I have cash coming in, but also available for anything that looks good. With a number of positions also expiring next week, I’m looking forward to closing the books on 2016. I’m not quite certain what to expect this week, nor what I may do, nut I don’t think that I’ll be too busy trading. Lately, going along for the ride and finding some opportunities to sell calls on uncovered positions has been a nice way to go. . |
