Tuesday, May 30

Markets slipped today following the extended weekend. In an unusual set of circumstances nearly every measurable index was down somewhat today. The major market indices (DJI, S&P), WTI Crude, Gold spot prices, and the US dollar all fell in a range between 0.3% and 0.1% today. Typically several of those indicators have an inverse relationship (the dollar and gold prices/the dollar and crude/crude and gold), but that wasn’t the case today.

In economic news, both personal income and spending were in line with estimates, but consumer confidence is down slightly. Sentiment towards current conditions rose slightly, but confidence in business performance over the next six months declined somewhat.

Overall it was a fairly news-less day, which in turn lead to slightly below average trade volume. This may have contributed to the slump in prices today. We were able to take advantage of a moderate price reduction in deployment of another buy/write position in US Steel. The expiration date for the position is late July, with an expected assignment and total return at just over 7%.

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