Tuesday, August 24, 2010

8/25 Almanac

On Wednesday, Aug. 25: Durable goods.

There are 24 days before the September options expire, 52 the October and 87 the November.

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

Stats

Blue chip stocks (SPY) closed the latest regular session down 1.5% from the prior close. During the day SPY traversed 1.3% high to low in a net move down of 0.4%.

The day's extremes: Open $105.95, high $106.39, low $104.97, close $105.53.

SPY closed below the DeMark pivots. The next DeMark pivots are $104.54-$105.96.

In total, 3.3 billion shares were traded on the three major U.S. stock exchanges, 32% more than on the prior trading day.


Econ reports:

Durable goods orders are out at 8:30 a.m. Eastern. These are orders for big-ticket items, the thought being that if people are stepping up to buy these sorts of expensive things, they're more willing to spend and there is light at the end of the tunnel to prosperity, which is just around the corner.

New home sales are out at 10 a.m., along with the Federal Housing Finance Agency price index, and petroleum inventories will be released at 10:30 a.m.

Another housing indicator: Mortgage Bankers purchase applications, considered to be a leading indicator of housing prices, at 7 a.m. (mortgage bankers all being early risers).


Trading Calendar:

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


Good trading!

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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