Thursday, May 20, 2010

5/21 Almanac

On Friday, May 21: Last day to trade May options.

Friday is the last trading day for May options. There are 30 days before the June options expire and and 57 the July.

On the jump, market stats, econ reports, rules, my holdings and a good book...


Stats

Blue chip stocks (SPY) closed the latest regular session down 3.8% from the prior close. During the day SPY traversed 2.2% high to low in a net move down of 1.7%.

Thursday's extremes: Open $109.38, high $109.89, low $107.47, close $107.54.

SPY closed below the DeMark pivots and traded below them for most of the day. The next DeMark pivots are $106.30-$108.72.

In total, 5.4 billion shares were traded on the three major U.S. stock exchanges, 1.2 billion more than on the prior trading day.


Econ reports: None.


Rules:

By my rules, at this point in the cycle I can trade June covered calls, iron condors, and butterfly, calendar, diagonal and vertical spreads. Also, July single calls or puts. Shares, of course, are good anytime.


Good trading.



The Investor's Guide to Active Asset Allocation: Using Technical Analysis and ETFs to Trade the Markets
Martin Pring's detailed deconstruction of the economic cycle: What sorts stocks to look for at each stage of the recovery. A masterful analysis.






The Investor's Guide to Active Asset Allocation: Using Technical Analysis and ETFs to Trade the Markets
Martin Pring's detailed deconstruction of the economic cycle: What sorts stocks to look for at each stage of the recovery. A masterful analysis.



New to Private Trader? Check out the Reader's Guide
New to private trading? Here's a look at How to Become a Private Trader.

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