Friday, October 22, 2010

10/25 Almanac

On Monday, Oct. 25: Existing home sales.

There are 26 days before the November options expire, 54 the December and 89 the January.

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

Stats

Blue chip stocks (SPY) closed the latest regular session up 0.2% from the prior close. During the day SPY traversed 0.5% in a net move up of 0.06% (7¢).

The day's extremes: Open $118.31, high $118.53, low $118.00, close $118.38.

SPY traded entirely within the DeMark pivots after trading above and below their range. The next DeMark pivots are $118.10-$118.72.

In total, 3.1 billion shares were traded on the three major U.S. stock exchanges, about the same as the prior trading day.


Econ reports:

Most homes sold have been around for awhile. They're not new. So although the Realtors Association's existing home sales report sounds like a philosophical problem (what is a non-existing home, really?), it is in fact a primo gauge of consumer confidence, future hopes, the role of the dollar, the state of jobs market, and the willingness of finance to actually (gasp!) lend money. Out at 9:15 a.m. Eastern, it often moves the markets.

Later in the week: Durable goods on Wednesday, and the GDP 2nd quarter advance figures, the first peek at Q2, on Friday.


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 January 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.


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


Enjoy the weekend!





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