Thursday, October 14, 2010

10/15 Almanac

On Friday, Oct. 15: Consumer prices, retail sales.

This is the last trading day for October options. There are 36 days before the November options expire and 65 the December.

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


Blue chip stocks (SPY) closed the latest regular session down 0.4% from the prior close. During the day SPY traversed 1.1% in a net move down of 0.3%.

The day's extremes: Open $117.81, high $118.01, low $116.72, close $117.46.

SPY closed below the DeMark pivots. The next DeMark pivots are $116.45-$117.74.

In total, 3.1 billion shares were traded on the three major U.S. stock exchanges, 10% fewer than the prior trading day.

Econ reports:

The consumer price index -- think inflation, deflation and all around badflation -- will be released at 8:30 a.m. Eastern, along with retail sales. Consumer prices have the ability to move the Federal Open Market Committee to action. Retail sales are a good indicator of whether Americans have psychology exited the economic slump.

Other reports: consumer sentiment at 9:55 a.m., a report produced by Reuters and the University of Michigan, the Treasury budget, showing the federal government's deficit, at 2 p.m., business inventories at 10 a.m. and the Empire State Manufacturing Survey at 8:30 a.m.

All in all, it should be enough to keep the markets a'roilin'.

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.
  • IDCC: A break above $30.67 for entry on the bull side. Analysis.

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

Slow Trading Watchlist stocks:

Good trading!

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