Thursday, August 26, 2010

8/27 Almanac

On Friday, Aug. 27: Gross domestic product.

There are 22 days before the September options expire, 50 the October and 85 the November.

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


Blue chip stocks (SPY) closed the latest regular session down 0.7% from the prior close. During the day SPY traversed 1.6% high to low in a net move down of 1.1%.

The day's extremes: Open $106.44, high $106.58, low $104.88, close $105.23.

SPY closed within the DeMark pivots after trading above them. The next DeMark pivots are $104.21-$105.91.

In total, 2.9 billion shares were traded on the three major U.S. stock exchanges, 7% fewer than on the prior trading day.

Econ reports:

Three potentially high-impact economic events on Friday:

Gross domestic product, at 8:30 a.m. Eastern. This is the largest measure of the economy, and it is used by some as a measure of recession. The economy grew at a 2.4% annual pace last quarter. This quarter? Economists are expecting things to slow down considerably.

Consumer sentiment at 9:55 a.m. This report answers the question, not whether we're actually shopping our way back to prosperity, but rather, how we feel about things. It sometimes moves the market. Myself, I think it's sloppy and unreal as economic indicators go.

Finally, at 10 a.m., what might be the biggest event of the day. Fed Chairman Ben Bernanke speaks to the annual econ conference at Jackson Hole, Wyoming.

Both The New York Times and The Washington Post did long thumbsuckers Thursday morning on the possible huge meaning of the speech, while having not a clue as to what he intends to say.

It may be a market mover. On the other hand, Bernanke may choose to recite the poetry he secretly composes on weekends. ("Lehman, thou scoundrelly imp. / Wouldst though turn me / Into Wall Street's pimp?")

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, November straddles and single calls or puts. Shares, of course, are good anytime.

Good trading!


  • 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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