Friday, July 23, 2010

7/26 Almanac

On Monday, July 26: New home sales.

There are 26 days before the August options expire, 54 the September and 82 the October.

On the jump, market stats, econ reports, trading calendar and a good book...


Blue chip stocks (SPY) closed the latest regular session up 0.9% from the prior close. During the day SPY traversed 1.5% low to high in a net move up of 1.1%.

The day's extremes: Open $109.24, high $110.57, low $108.93, close $110.41.

SPY closed within the DeMark pivots after trading above them. The next DeMark pivots are $109.67-$111.31.

In total, 3.5 billion shares were traded on the three major U.S. stock exchanges, 5% more than on the prior trading day.

Econ reports:

The new home sales report is out at 10 a.m. Eastern. Housing is one theme for the week, but the big reports are durable on Wednesday and the gross domestic product on Friday.

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 October 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.


  • 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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