Sunday, May 2, 2010

5/3 Almanac

On Monday, May 3: Personal income, manufacture & more.

There are 19 days before the last trading day for May options, 47 the June and 75 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 1.7% from the prior close. During the day SPY traversed 1.8% high to low in a net move down intraday of 1.7%.

Today's extremes: Open $120.88, high $121.01, low  $118.78, close $118.81.

SPY closed below the range of the DeMark pivots. The next DeMark pivots are $117.68/$119.91.

In total, 4.4 billion shares were traded on the three major U.S. stock exchanges, unchanged from the prior trading day.


Econ reports:

A busy Monday:

Personal income and outlays at 8:30 a.m. Eastern. That measures how much people got and how much they spent. On either side, it's a key measure of how the economy is doing. The ratio of one to the other shows the savings rate.

The Institute for Supply Management's manufacturing index surveys manufacturers on a lot indicators to try to determine if manufacturing activity is increasing or declining. Out at 10 a.m.

Construction spending, also at 10 a.m., and sales report from the automakers throughout the day round out the mix.

Rules:

By my rules, at this point in the cycle I can trade June calendar and vertical spreads, and July single calls or puts. Shares, of course, are good anytime.


My Holdings

May expiry:
  • BBY, bull call spread, c44/-c45 
  • CIEN, bull call spread, c18/-c19
  • GE, bull call spread, c18/-c19
  • QQQQ, bull call spread, c49/-c50 
  • UNP, bull call spread, c75/-c80

Dividend shares: JNK, NLY

Special situation: PALM

Zombie shares: MCO

Good trading!



Options as a Strategic Investment

Options as a Strategic Investment is a one-stop source of practical information, clearly presented, about the the trader's most important tool for managing risk. This book occupies an important place on my desk.





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