There are 5 days before the last trading day for May options, 33 the June and 61 the July.
On the jump, market stats, econ reports, rules, my holdings and a good book...
Stats
Blue chip stocks (SPY) closed the latest regular session down 1.8% from the prior close. During the day SPY traversed 2.1% high to low in a net move down of 1.1%.
Today's extremes: Open $115.12, high $115.33, low $112.87, close $113.89.
SPY closed below the DeMark pivots. The next DeMark pivots are $112.15-$114.61.
In total, 4 billion shares were traded on the three major U.S. stock exchanges, 500 million more than on the prior trading day.
Econ reports:
The international capital report, released by the Treasury at 9 a.m. Eastern, tracks foreign participation in U.S. capital markets. Foreign money coming into the U.S. funds the deficit; a net outflow suggests a loss loss of confidence and higher interest rates ahead.
The housing market index shows how sales of new homes are doing. A strong recovery here presages a strong general recovery. Don't bank on it, though. Out at 1 p.m.
Later in the week: Producer prices and housing starts on Tuesday, consumer prices on Wednesday.
Rules:
By my rules, at this point in the cycle I can trade June covered calls, iron condors, and butterfly, calendar, diagonal and vertical spreads. Also, July single calls or puts. Shares, of course, are good anytime.
Enjoy the weekend!
Martin Pring's detailed deconstruction of the economic cycle: What sorts stocks to look for at each stage of the recovery. A masterful analysis.
Martin Pring's detailed deconstruction of the economic cycle: What sorts stocks to look for at each stage of the recovery. A masterful analysis.
Skynet Panic of May 6
Panic Looks Like This
Skynet Panic Poisons Technical Tools
New to Private Trader? Check out the Reader's Guide
New to private trading? Here's a look at How to Become a Private Trader.
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