Tuesday, October 5, 2010

10/6 Almanac

On Wednesday, Oct. 6: Employment preview, petroleum inventories.

There are 10 days before the October options expire, 45 the November and 73 the December.

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

Stats

Blue chip stocks (SPY) closed the latest regular session up 2.0% from the prior close. During the day SPY traversed 1.4% in a net move up of 1.1%.

The day's extremes: Open $114.80, high $116.32, low $114.67, close $116.04.

SPY traded entirely above the DeMark pivots. The next DeMark pivots are $115.36-$117.01.

In total, 3.5 billion shares were traded on the three major U.S. stock exchanges, 24% more than the prior trading day.


Econ reports:

Friday's monthly employment report from the government always has a few rumbles earlier in the week that maybe point to what the figures will be.

One such is the Automatic Data Processing employment report, from the company that handles a huge portion of the nation's payrolls, out at 8:15 a.m. Eastern. The Challenger job-cut report, also from the private sector, counts layoffs. It's out at 7:30 a.m.

The petroleum inventories report will be released at 10:30 a.m.

Small fry: Mortgage bankers report on applications for mortgages at 7 a.m.


Trading Calendar:

By my rules, at this point in the cycle I can trade November vertical and calendar spreads, December straddles, calls and puts. And of course, shares are good at any time.


What I'm looking for:
  • ENDP: Break above the swing high of $34.26 to trigger reentry. Analysis.
  • MO: A break above the swing high of $24.39 to trigger reentry, or a break below the 20-day moving average to trigger an exit. Analysis.
Other Watchlist stocks:
  • Bull: CMG, LVS.
  • Income: AOD, NLY.

Good trading!


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