Tuesday, November 16, 2010

11/17 Almanac

On Wednesday, Nov. 17: Consumer price index, housing starts.

There are 3 days before the November options expire, 31 the December and 66 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 1.0%.

The day's extremes: Open $119.29, high $119.49, low $117.59, close $118.16.

SPY closed below the DeMark pivots. The next DeMark pivots are $116.93-$118.83.

In total, 3.5 billion shares were traded on the three major U.S. stock exchange, 29% more than on the prior trading day.

Five-year bond yields imply inflation at 1.61%, down 8 basis points from the prior trading day.

Econ reports:

The consumer price index will be released at 8:30 a.m. Eastern. It is the most widely watched measure of inflation (which is non-existent), except for among the Feds and other econ professionals, who tend to use the gross domestic product deflator for that purpose. Or so it is said. A major market mover in case of a surprise.

Housing starts, also out at 8:30 a.m., are a measure more of the homebuilding industries outlook than the housing market per se. When a shovel hits the dirt to start digging a foundation for a home, that's a housing start. If homebuilders are wrong in their assessment of the marketplace, then it becomes an empty housing start, building for non-existent homebuyers.

A measure of non-existent inflation and building for non-existent homebuyers. It's a zen sort of econ day.

Also, petroleum inventories at 10:30 a.m., and mortgage bankers purchase applications at 7 a.m.

Trading Calendar:

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

What I'm looking for:
Click here for stocks on my watchlists. Good trading!

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