There are 3 days before the June options expire, 31 the July and 66 the August.
On the jump, market stats, econ reports, trading calendar and a good book...
Stats
Blue chip stocks (SPY) closed the latest regular session up 2.3% from the prior close. During the day SPY traversed 1.8% low to high in a net move up of 1.6%. Friday's extremes: Open $110.28, high $112.10, low $110.09, close $112.00. SPY closed above the DeMark pivots. The next DeMark pivots are $111.05-$113.06. In total, 3.4 billion shares were traded on the three major U.S. stock exchanges, up 12.8% from the prior trading day. Econ reports: A big day for major economic reports. Housing starts and the producer price index will be released at 8:30 a.m. Eastern. The housing report is a leading indicator of the housing market, since it shows how many homes will be available for sale once their complete (instead of just started). The producer price index is a sneak preview for Thursday's all-important consumer price index. Producer prices lead consumer prices, sort of, in the marketplace (although if people aren't buying, then companies may have to eat those higher producer prices rather than recovering those costs from customers). Industrial production at 9:15 a.m., by showing a response, gives some insight into demand. If production is up, then their must be an expectation that there is higher demand for those goods, and happy days are just a around the corner. Yes? Those are the big guns. Also, petroleum inventories at 10:30 a.m. -- this mainly affects the energy sector. And Fed Chairman Ben Bernanke gives a speech on reforming the financial sector in light of the 2007/2008 collapse at 5:45 p.m. | Everything you need to know about the economic indicators that drive the markets. From the staff of The Economist. |
Trading Calendar:
By my rules, at this point in the cycle I can trade July covered calls, iron condors, butterflies, and diagonal, calendar and vertical spreads. Also, August single calls or puts. Shares, of course, are good anytime.
Good trading!
OK. The credit bubble burst. Housing, burst. Shockwaves reverberated. Markets collapsed. What lies ahead as we remerge from the wreckage.
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