Wednesday, October 27, 2010

10/28 Almanac

Updated with Wednesday's market stats.

On Thursday, Oct. 28: Jobless claims, natural gas.

There are 23 days before the November options expire, 51 the December and 86 the January.

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


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

The day's extremes: Open $117.89, high $118.51, low $117.26, close $118.38.

SPY traded closed within the DeMark pivots after trading below their range. The next DeMark pivots are $117.82-$119.07.

In total, 3 billion shares were traded on the three major U.S. stock exchanges, 8% more than on the prior trading day.

Five-year bond yields imply inflation at 1.69%.

Econ reports:

The weekly jobless claims report is out at 8:30 a.m. Eastern. It moves the market from time to time because it is the most timely indicator of how the recovery is going.

The natural gas inventory is out at 10:30 a.m. Sometimes important for the energy sector.

Treasury announces T-bill auction results at 11 a.m., and the Federal Reserve releases the Fed budget and money supply numbers at 4:30 p.m. Interesting stuff, but 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 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.

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

Good trading!

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