Yesterday I was able to buy unleaded 88 for my SUV for $2.35/gallon–getting a fill up for $35 bucks or so is sure less painful than the $50 fill ups of only a couple of weeks ago. Also helps consumer confidence – although there are always reasons for ‘negative nebobs’ to be negative – just a wide divergence in attitudes on the economy. I look around and say ‘things are pretty good?’ – others look around and say ‘this economy sucks’. Seems to me we have had these disagreements for decades and decades and there is no reason to think things will change.
So I’m looking at the futures markets – how can there be so little volatility in markets? In the olden days (1980’s and 1990’s) the talking heads always referred to this very tight trading range as building ‘tension on the tape’ and of course implying tension will eventually break with a severe move one way or the other. I don’t know – this has been going on for a long time this year and I don’t see drastic moves in either direction, but one never sees the drastic moves, because they will be caused by ‘black swans’ and by definition it can’t be predicted.
Equity futures are darned near flat again this morning and traded very flat yesterday. The 10 year treasury is at 3.91% right now (6 a.m. central) – tight, tight range – waiting for a reason to move up or down. Yesterday the only economic release we had was ‘home builder sentiment’ – as you might expect with lower interest rates the number was slightly improved. Today we have housing starts and building permit data being released – forecasts are looking flattish and I wouldn’t expect anything market moving.
I did no buying or selling yesterday. I noted that on Friday I had part of a GTC buy order execute on Gladstone Land 5% term preferred (LANDM) and there remains an order outstanding for more. I cancelled 2 orders on 2 Connecticut Power and Light $50 issues–they ran away from my GTC orders so I just cancelled them for now–we’ll see if I want to enter new orders for some illiquid issues. Still trying to decide on a mREIT preferred purchase and waiting also waiting on the new issue from Midcap Financial 8% baby bond (MFICL) which has not started trading. Likely I will by a dab of this one to add to the 2 BDC securities I currently own–thinking a basket of 3-4 issues is better than any single BDC holding.
Well let’s get going – see what excitement the day has in store for us (or more likely just a nice quiet day).