Tuesday, October 12, 2010

10/13 Almanac

On Wednesday, Oct. 13: Treasury budget.

There are 3 days before the October options expire, 38 the November and 66 the December.

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


Blue chip stocks (SPY) closed the latest regular session up 0.6% from the prior close. During the day SPY traversed 1.5% in a net move up of 0.9%.

The day's extremes: Open $116.27, high $117.35, low $115.65, close $117.35.

SPY closed above the DeMark pivots after trading below their range. The next DeMark pivots are $116.50-$118.20.

In total, 2.9 billion shares were traded on the three major U.S. stock exchanges, 23% more than the prior trading day.

Econ reports:

The Treasury budget at 2 p.m. Eastern will tell the size of the budget deficit. It can sometimes move markets if there's a surprise. But well all know what the deficit will show: Think Big.

Also, mortgage bankers release their purchase applications figures at 7 a.m. This is a leading indicator for the housing market. And import and export prices will be released at 8:30 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:
  • NLY: A rise above $18.40 or so for re-entry on the bull side. Analysis.

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

Good trading!

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