Monday, July 12, 2010

7/13 Almanac

On Tuesday, July 13: International trade, Treasury budget.

There are 4 days before the July options expire, 39 the August and 67 the September.

On the jump, market stats, econ reports, trading calendar and a good book...


Stats

Blue chip stocks (SPY) closed the latest regular session up 0.1% from the prior close. During the day SPY traversed 1.0% low to high in a net move up of 0.4%.

Friday's extremes: Open $107.60, high $108.24, low $107.15, close $108.03.

SPY traded below and closed with the DeMark pivots. The next DeMark pivots are $107.59-$108.68.

In total, 2.6 billion shares were traded on the three major U.S. stock exchanges, 7% more than on the prior trading day.


Econ reports:

The international trade report at 8:30 a.m. Eastern examines the Americans' trade with foreign countries, whether they're selling more abroad than they're buying, or vice versa. It can be real market mover if there's a surprise. This report is a major motivator in U.S. efforts to persuade China to raise of the value of its currency, the yuan.

The Treasury budget, due out at 2 p.m., is what people are talking about when they discuss the federal budget deficit, which is a major weapon these days in the propaganda war between the center-left Democrats and rightist Republicans,


Trading Calendar:

By my rules, at this point in the cycle I can trade August calendar, vertical, diagonal and butterfly spreads, iron condors and covered calls. Also, September single calls or puts, and shares.


Good trading!


The Great Reflation: How Investors Can Profit From the New World of Money
OK. The credit bubble burst. Housing, burst. Shockwaves reverberated. Markets collapsed. What lies ahead as we remerge from the wreckage.



Abbreviations:

  • psar - Parabolic Stop and Reverse
  • adx - Average Directional Index
  • pps - Person's Proprietary Signal
  • ma20 - 20-day moving average
  • macd - Moving Average Convergence-Divergence
  • sto - Fast Stochastic


About the glance: The colors indicate the state of each signal.

  • trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
  • adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
  • psar, pps, macd: green for bull mode, red for bear
  • sto: green for overbought, red for oversold, yellow for the neutral zone.

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