Monday, July 26, 2010

7/27 Almanac

On Tuesday, July 27: Metro home prices, consumer confidence.

There are 25 days before the August options expire, 53 the September and 81 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 1.0% from the prior close. During the day SPY traversed 1.3% low to high in a net move up of 0.9%.

The day's extremes: Open $110.60, high $111.67, low $110.29, close $111.56.

SPY closed above the DeMark pivots. The next DeMark pivots are $110.93-$112.31.

In total, 3.1 billion shares were traded on the three major U.S. stock exchanges, 12% fewer than on the prior trading day.

Econ reports:

The S&P Case-Shiller home price index, out at 9 a.m. Eastern, tracks housing prices in 20 metro areas. In real estate, all markets are local, and this report gives insight into what lies behind the national averages.

Consumer confidence at 10 a.m. answers the burning question, "If we shop till we drop, isn't prosperity right around the corner?" How consumers feel about spending their hard-earned dollars is a measure of the economic turn-around (if such there be).

Shop 'till we drop? Yes. We. Can!! In the eyes of the conventional wisdom, that's the recipe for good times ahead.

Small fry: Comparable store sales at major retails at 7:45 a.m., the Redbook retailing report at 8:55 a.m. and the State Street investor confidence report at 10 a.m.

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.

No comments:

Post a Comment