Thursday, October 28, 2010

10/29 Almanac

On Friday, Oct. 29: Gross Domestic Product.

There are 22 days before the November options expire, 50 the December and 85 the January.

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


Blue chip stocks (SPY) closed the latest regular session up 0.02% (2¢) from the prior close. During the day SPY traversed 1.1% in a net move down of 0.6%.

The day's extremes: Open $119.08, high $119.11, low $117.83, close $118.40.

SPY traded closed within the DeMark pivots after trading above their range. The next DeMark pivots are $117.48-$118.76.

In total, 3 billion shares were traded on the three major U.S. stock exchange, barely changed from the prior trading day.

Five-year bond yields imply inflation at 1.63%.

Econ reports:

The Commerce Dept. takes a first stab at the third-quarter GDP numbers, the broadest measure of the national economy, at 8:30 a.m. Friday's advance numbers will be followed in November by the preliminary numbers and in December by the finals.

The employment cost index -- what it costs to employ someone -- is out at 8:30 a.m., the Chicago purchasing managers index -- a broad survey of business conditions -- at 9:45 a.m., and farm prices at 3 p.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 January straddles, calls and puts. And of course, shares are good at any time.

What I'm looking for:
  • An exit from NLY following a negative earnings surprise. Shares unsold today -- I'll sell on Friday or Monday.

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

Good trading!

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