Thursday, July 15, 2010

7/16 Almanac

On Friday, July 16: Consumer prices, sentiment. Also, a big SHOUT OUT to China!

There is one day before the July options expire, 36 the August and 64 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 up 0.03% from the prior close. During the day SPY traversed 1.8% low to high in a net move up of 0.06%. (Talk about narrow trading.)

Friday's extremes: Open $109.61, high $110.06, low $108.17, close $109.68.

SPY traded below and closed within the DeMark pivots. The next DeMark pivots are $108.93-$110.82.

In total, 3.1 billion shares were traded on the three major U.S. stock exchanges, 9% fewer than on the prior trading day.


Econ reports:

The consumer price index, out at 8:30 a.m. Eastern, is the most watched measure for signs of inflation, and these days, deflation. It can have a huge impact on the market, and the report will dominate Friday's trading.

The consumer sentiment report at 9:55 a.m. can also be a market mover, although less so than the price report. The sentiment report tries to divine, as do so many, whether we're all ready to shop our way back to prosperity.

Treasury international capital at 9 a.m. tracks the extent to which foreign money is invested in U.S. markets. Put it another way, the report answers the question, Does China still love us? (Hey, China, a BIG shout out to ya!! We love you!!!! Send money!!!!!)


Trading Calendar:

By my rules, at this point in the cycle I can trade August calendar, vertical, diagonal and butterfly spreads, iron condors and covered calls. Also, September straddles and 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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