Thursday, June 24, 2010

6/25 Almanac

On Friday, June 25: GDP, sentimental consumers.

There are 22 days before the July options expire, 57 the August and 85 the September.

On the jump, market stats, econ reports, trading calendar 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 1.6% high to low in a net move down of 1.2%.

Friday's extremes: Open $108.69, high $108.83, low $107.14, close $107.42.

SPY closed below the DeMark pivots. The next DeMark pivots are $106.44-$108.13.

In total, 3.3 billion shares were traded on the three major U.S. stock exchanges, down 1.7% from the prior trading day.

SPY at a glance:
trendadxpsarppsmacdmacd
trend
stosto
trend
$107.42


Econ reports:

The biggest and slowest of all economic indicators, the gross domestic product (GDP), will be released at 8:30 a.m. Eastern, followed by consumer sentiment at 9:55 a.m.

GDP is also the ticker signal of Goodrich Petroleum Corp. I'm not sure what to make of that.

And also, why is the term "sentiment" used to track consumer moods? It sounds so Victorian, somehow, like maidens swooning with the vapors. Why not "consumer moods", or "consumer feelings", or "consumer fear and loathing"? Just asking.


Everything you need to know about the economic indicators that drive the markets. From the staff of The Economist.


Trading Calendar:

By my rules, at this point in the cycle I can trade July covered calls, iron condors, butterflies, and diagonal, calendar and vertical spreads. Also, September single calls or puts. Shares, of course, are good anytime.


Good trading!


The Great Reflation: How Investors Can Profit From the New World of Money
OK. The credit bubble burst. Housing, burst. Shockwaves reverberated. Markets collapsed. What lies ahead as we remerge from the wreckage.



Abbreviations:

  • psar - Parabolic Stop and Reverse
  • adx - Average Directional Index
  • pps - Person's Proprietary Signal
  • ma20 - 20-day moving average
  • macd - Moving Average Convergence-Divergence
  • sto - Fast Stochastic


About the glance: The colors indicate the state of each signal.

  • trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
  • adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
  • psar, pps, macd: green for bull mode, red for bear
  • sto: green for overbought, red for oversold, yellow for the neutral zone.

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