Daily Market Update – May , 2015 (Close)
Yesterday, was as it should have been, a fairly quiet day, even though it did spend a bit of time in the triple digit gain arena.
Other than this week’s Employment Situation Report coming on Friday, there’s not too much to drive markets, as earnings reports are also now going to begin slowing down.It ended the day with a much more moderated gain and that looked as it will be the polar opposite to this morning, as the futures were setting up for a moderately lower day.
Again, there’s no news that should play much of a hand in shaping the day’s trading. Other than tomorrow’s ADP report, which is just a precursor to Friday’s Employment Situation Report, there’s nothing on the docket.
Even after a period of time when there was a quiet period on FOMC speeches, it’s a pretty quiet week on that end, as well.
At some point, especially if it continues heading in its recent direction, someone is going to take note of where bond traders have been taking the rate on the 10 Year Treasury. It’s still below that recent 2.3% high point from a couple of months ago, but it has gone about 15% higher in just a week. As it moves higher not only does it create more pressure in other interest sensitive areas, but it may finally start offering some competition for whatever uncommitted investment dollars are out there.
However, if you listen to the people at TD Ameritrade, it doesn’t seem as if there is that much un-invested money sitting in accounts, at least not for individual investors. On top of that, margin debt is at an all time high.
Take those bits of information together and you have less of a catalyst for upward move in stocks and the prospects that any move into bonds would have to come at the expense of money already invested in stocks.
So the burden of proof is definitely on the bulls, maybe even more than usual.
By the early afternoon, as the DJIA was at a triple digit loss, came the first suggestions that bonds may have been the source of the weakness being seen.
Maybe, but we’ll see where those rates keep going. It wasn’t too long ago that they did the same thing and then had to reverse course as it was getting more and more clear that the FOMC wasn’t going anywhere fast with any decision on raising rates.
With a couple of purchases yesterday, I think that i am done for the week. Not that I have the cash reserves to go on, but the rest of the week will likely be spent looking for any opportunity to generate some additional revenue. As always, the includes the need to keep fingers crossed and to hope for any of a few different outcomes.
Most of all, I would love to see those prayers answered with some assignments.Those are still looking a little bleak, so I may be willing to actually let the Market Vectors Gold Miners ETF go, rather than rolling if it is in the money, as I’ve been doing repeatedly over the past few months.
With today’s negative opening looming and then becoming a reality, I was hopeful of seeing some isolated bumps in individual positions and would again have gladly taken any opportunity to generate some revenue from any uncovered positions.