There are 16 days before the last trading day for May options, 44 the June and 72 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 0.6% from the prior close. During the day SPY traversed 1.6% low to high in a net move up of 0.2%.
Today's extremes: Open $116.56, high $117.80, low $115.97, close $116.82.
SPY closed within the range of the DeMark pivots after trading below them for awhile. The next DeMark pivots are $116.40/$118.23.
In total, 4.5 billion shares were traded on the three major U.S. stock exchanges, 100 million fewer than in the prior trading day.
Econ reports:
A busy enough day for econ report-mongers, although not necessarily one of great consequence.
The productivity index will be out at 8:30 a.m. Eastern. This is important has a gauge of future inflation. A workforce that's becoming more productive -- more work for the buck -- can make the economy grow without producing inflation. This works because companies are producing more stuff and services but not having to pay more for it.
I've consider productivity to be a mixed bag. Yeah, great for the people at the top of the corporate heap and for the Fed's spreadsheets, but sort of bad for workers. More productivity means more product with fewer jobs, so for the out of work or underemployed person, productivity stinks.
It could just as well be called the exploitation index.
Also at 8:30 a.m., weekly jobless claims, this week an overture to the full employment report on Friday.
Natural gas inventories are out at 10:30 a.m., and at 4:30 p.m., the Fed balance sheet and the once popular and now widely ignored money supply.
Also, everybody's talking: Treasury Sec Tim Geithner testified in Washington on the shadow banking system at 9 a.m., and Fed Chair Ben Bernanke addresses a bank structure onference in Chicago at 9:30 a.m.
Lesser lights: St. Louis Fed Pres James Bullard speaks in St. Louis at 9:10 a.m., and Richmond Fed Pres Jeffrey Lacker discusses the economic outlook in Richmond at 10 a.m.
Sometimes these guys actually commit news. Mainly, not.
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:
- 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!
Martin Pring's detailed deconstruction of the economic cycle: What sorts stocks to look for at each stage of the recovery. A masterful analysis.
New to private trading? Here's a look at How to Become a Private Trader.
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