Tuesday, October 19, 2010

10/20 Almanac

On Wednesday, Oct. 20: Beige book, oil inventories.

There are 31 days before the November options expire, 59 the December and 94 the January.

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


Blue chip stocks (SPY) closed the latest regular session down 1.6% from the prior close. During the day SPY traversed 1.6% in a net move down of 0.4%.

The day's extremes: Open $117.19, high $117.85, low $116.02, close $116.73.

SPY closed below the DeMark pivots. The next DeMark pivots are $115.46-$117.29.

In total, 3.3 billion shares were traded on the three major U.S. stock exchanges, 22% more than the prior trading day.

Econ reports:

The Federal Reserve releases its eight-times-yearly Beige Book, a region by region report on the state of the economy. Interesting read, although it never moves markets. It's out at 2 p.m. Eastern.

Petroleum inventories are out at 10:30 a.m., and the Mortgage Bankers Association's report on applications for loans to buy homes, a leading indicator, is released at 7 a.m.

All in all, no big.

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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