Tuesday, July 27, 2010

7/28 Almanac

On Wednesday, July 28: Durable good, petroleum.

There are 24 days before the August options expire, 52 the September and 80 the October.

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


Blue chip stocks (SPY) closed the latest regular session down 0.01% from the prior close. During the day SPY traversed 1.1% high to low in a net move down of 0.6%.

The day's extremes: Open $112.17, high $112.29, low $111.11, close $111.55.

SPY traded entirely within the DeMark pivots. The next DeMark pivots are $110.74-$111.92.

In total, 3.2 billion shares were traded on the three major U.S. stock exchanges, 2.3% more than on the prior trading day.

Econ reports:

One of the major potential market movers, the durable goods report, will be released at 8:30 a.m. Eastern. This tracks big-ticket items that cost a lot and last a long time. If people are willing to pony up for these kinds of products, then they must be feeling pretty good about their future incomes.

Also, at 10:30 a.m. the petroleum inventories, which often show an impat on energy stocks and exchange-traded funds.

Small fry: The Mortgage Bankers' leading inndicators on home sales and housing construction at 7 a.m., and the Federal Reserve's Beige Book survey of economic conditions, at 2 p.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.

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