Monday, August 9, 2010

8/10 Almanac

On Tuesday, Aug. 10: Federal Open Market Committee announcement, productivity.

There are 11 days before the August options expire, 39 the September and 67 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 0.8% low to high in a net move up of 0.06%.

The day's extremes: Open $112.02, high $113.18, low $112.32, close $112.99.

SPY traded entirely within the DeMark pivots. The next DeMark pivots are $112.66-$113.52.

In total, 2.3 billion shares were traded on the three major U.S. stock exchanges, 13% fewer than on the prior trading day.

Econ reports:

Ben Bernanke and the gang in the Federal Open Market Committee meet, and they'll make an announcement at 2:15 p.m. Eastern.

In light of the surprisingly weak jobs report on Friday, this Fed announcement takes on added weight. The economic recovery is not proceeding as planned. What's a central bank to do? Likely, a market mover.

The quarterly productivity and cost of labor, out at 8:30 a.m., could also impact trading. These two factors have a large influence on business results.

Small fry: The ICSC-goldman store sales at 7:45 a.m., Redbook's retailer report a 8:55 a.m. and wholesale trade at 10 a.m.

Trading Calendar:

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


  • 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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