Monday, October 11, 2010

10/12 Almanac

On Tuesday, Oct. 12: FOMC minutes, some retail reports.

The stock and futures markets are open, as is the CBOE options market, with the exception of a few products. Read the press release for details.

There are 4 days before the October options expire, 39 the November and 67 the December.

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


Blue chip stocks (SPY) closed the latest regular session up 0.1% from the prior close. During the day SPY traversed 0.6% in a net move down of 0.06%.

The day's extremes: Open $116.72, high $116.97, low $116.25, close $116.65.

SPY traded entirely within the DeMark pivots. The next DeMark pivots are $116.09-$116.81.

In total, 2.4 billion shares were traded on the three major U.S. stock exchanges, 18% fewer than the prior trading day.

Econ reports:

The Federal Open Markets Committee, which sets monetary policy, releases the minutes of the Sept. 21 meeting, at 2 p.m. Eastern. The minutes aren't automatically a market mover, but the release does provide insight into what the FOMC members are thinking, and if their is dissent, then that's significant.

The Kansas City Federal Reserve Bank president, Thomas Hoenig, gives a speech at 11:45 a.m. that will no doubt be part of the FOMC story. He has in past meetings been a dissenter. He worries about inflation more than a deepening of the now-officialy-over-and-tepidly-recovering recession.

Couple of retail reports, also: ICSC-Goldman release sales at comparable stores run by the major retail chains, at 7:45 a.m., and Redbook tosses out its version at 8:55 a.m.

Trading Calendar:

By my rules, at this point in the cycle I can trade November vertical, calendar, diagonal and diagonal spreads, and also iron condors. I can sell November covered calls, and trade December straddles, calls and puts. And of course, shares are good at any time.

What I'm looking for:
  • Nothing in particular at this point. I'm tracking existing trends.

Watchlist stocks:
  • Bull: CMG, ENP, LVS, MO.
  • Income: AOD, NLY.

Good trading!

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