Monday, September 20, 2010

9/21 Almanac

On Tuesday, Sept. 21: Housing starts, Fed announcement

There are 25 days before the October options expire, 60 the November and 88 the December.

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

Stats

Blue chip stocks (SPY) closed the latest regular session up 1.5% from the prior close. During the day SPY traversed 1.7% in a net move up of 1.2%.

The day's extremes: Open $112.88, high $114.46, low $112.52, close $114.21.

SPY closed above the DeMark pivots. The next DeMark pivots are $111.85-$112.82.

In total, 2.9 billion shares were traded on the three major U.S. stock exchanges, 32% fewer than the prior trading day.


Econ reports:

Housing starts counts the number of residential sites where construction has begun. When the first shovel punches into the ground to dig the foundation, that's a housing start. Out at 8:30 a.m. Eastern.

The Federal Open Market Committee announces decisions at 2:15 p.m. They can't lower rates -- no way they can drop below zero -- so they'll come up with some other sort of stimulatey thing.

Small fry: ICSC-Goldman on store sales at 7:45 a.m., Redbook on retailing at 8:55 a.m.


Trading Calendar:

By my rules, at this point in the cycle I can trade October covered calls, iron condors, 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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