2/1 Almanac

Monday, Feb. 1, is 18 days before the February options expire, 46 days the March and 74 days the April.

Historically, it tends to be a down day of the week on an up day of the month in an up month. . . .

In this period my rules allow trades in March calendar and vertical spreads. Butterfly and diagonal spreads, as well as covered calls, are off the table for now. I'm trading April expiration options for unhedged call and put purchases. These economic reports will be released: Personal income and outlays, 8:30 a.m. Eastern, a measure we consumers are getting and spending. "Consumers" is the key word here in trying to answer the question, "Can we spend ourselves back to prosperity?" Manufacturing index, 8:30 a.m., a report from the Institute of Supply management based on interviews with purchasing managers. Spending on new construction, 10 a.m., a measure of the health of the housing industry, among other things, such as lumber as a commodity. It is an important part of the GDP.

My portfolio consists of:

• CVS, iron condor, p28/-p31/-c34/c36
• ERTS, iron condor, p15/-p16/-c18/c19
• MCO, covered call,  s/-c30
  
• PALM, covered call, s/-c13

Blue chip stocks (SPY) closed the regular session at $107.39, down 1.1 percent from the prior day's close. The price touched the 61.8 percent Fibonacci retracement level, a significant location in the fall from the Jan. 20 high.

Mediawatch: CNNmoney says stocks fell because traders don't think the GDP growth will continue; AP agrees but also credits falling tech stocks. Of course, SPY began to fall on the minute chart about two hours after the GDP release, and long after the techs had begun to fall. Do the journalists writing these stories NOT have access to intra-day charts? Just asking.

In total, 4.7 billion shares were traded on the three major U.S. stock exchanges.

Enjoy the weekend.



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S&P 500, SPDR, Spiders, CVS, pharmacies, drugs, Electronic Arts games, Moodys bond rating, Palm smartphone Pixi Pri.