Wednesday, October 13, 2010

10/14 Almanac

On Thursday, Oct. 14: Producer prices, international trade.

There are 2 days before the October options expire, 37 the November and 65 the December.

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

Stats

Blue chip stocks (SPY) closed the latest regular session up 0.5% from the prior close. During the day SPY traversed 1.0% in a net move up of 0.2%.

The day's extremes: Open $117.66, high $118.55, low $117.38, close $117.92.

SPY closed within the DeMark pivots after trading above their range. The next DeMark pivots are $117.65-$118.82.

In total, 3.4 billion shares were traded on the three major U.S. stock exchanges, 20% more than the prior trading day.


Econ reports:

Two big econ bricks will fall on the markets: The producer price index and international trade, both at 8:30 a.m. Eastern. Add to that weekly jobless claims, also at 8:30 a.m., and two energy reports, and you have a recipe for market volatility.

Volatility being the mother of profit, all traders are looking for to Thursday with greedy joy. (Or perhaps, joyful greed.)

International trade is how much more we're buying from China (and other foreign countries) as opposed to selling to them. Think, trade deficit. Producer prices are a precursor of sorts to the consumer price index, which will be released on Friday.

The two energy reports are petroleum inventories at 11 a.m., and natural gas inventories at 10:30 a.m. Normally they're on separate days, but Monday was a semi-holiday, so they are squshed together.


Trading Calendar:

By my rules, at this point in the cycle I can trade November vertical, calendar, diagonal and diagonal spreads, and also iron condors. I can sell November covered calls, and trade December straddles, calls and puts. And of course, shares are good at any time.


What I'm looking for:
  • NLY: A rise above $18.40 or so for re-entry on the bull side. Analysis.


Watchlist stocks:
  • Bull: CMG, ENP, LVS, MO.
  • Income: AOD, NLY.


Good trading!





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