Thursday, July 29, 2010

7/30 Almanac

On Friday, July 30: Gross domestic product.

There are 22 days before the August options expire, 50 the September and 78 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 0.5% from the prior close. During the day SPY traversed 2.2% high to low in a net move down of 1.1%.

The day's extremes: Open $111.52, high $111.82, low $109.41, close $110.29.

SPY traded above and below the DeMark pivots before closing within them. The next DeMark pivots are $108.65-$111.06.

In total, 3.5 billion shares were traded on the three major U.S. stock exchanges, 25% more than on the prior trading day.

Econ reports:

The 200-pound-gorilla of economic reports hits the street at 8:30 a.m. Eastern: The gross domestic product, the value of all goods and services produced in the United States. It has a bearing in inflation and deflation fears, the value of the currency, future earnings expectations and so on stock prices -- you name it, and the GDP has a finger in the pie.

Otgher potential market movers: The employment cost index, also at 8:30 a.m., and consumer sentiment at 9:55 a.m.

Small fry: Chicago purchasing managers index on business conditions in Chicago (as goes Chicago, so goes the World!) at 9:45 a.m., and farm prices at 3 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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