Tuesday, November 23, 2010

11/24 Almanac

On Wednesday, Nov. 24: Orders for durable goods, personal income and spending.

There are 24 days before the December options expire, 59 the January and 87 the February.

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


Blue chip stocks (SPY) closed the latest regular session down .5% from the prior close. During the day SPY traversed 0.9% in a net move down of 0.3%.

The day's extremes: Open $118.77, high $119.02, low $117.99, close $118.45.

SPY traded entirely below the DeMark pivots. The next DeMark pivots are $117.71-$118.74.

In total, 2.9 billion shares were traded on the three major U.S. stock exchange, 11% more than on the prior trading day.

Five-year bond yields imply inflation at 1.66%, down 4 basis point from the prior trading day.

Econ reports:

Durable goods are the big things that cost much and last long. So the durable goods orders report, out at 8:30 a.m. Eastern, is a key measure of economic recovery. It includes things like refrigerators, TV sets and sofas, but also that Boeing 777 aircraft parked on the tarmac. It can be a market mover, but given the wide range of stuff that it covers, I'm personally never sure how to interpret it.

Also at 8:30 a.m., personal income and spending. Subtract spending from incomes, and you get personal savings. This is a key measure for retailers (and the economy) going into the holiday shopping season. The higher the savings, the lower the spending, and the lower the retail sales, and the fewer the jobs, and the higher the unemployment rate, and ... you get the picture. So spend wisely on Black Friday and thereafter, but spend a lot. The future of the American economy is in your hands.

Also out, the mortgage bankers report on mortgage applications at 7 a.m., weekly jobless claims at 8:30 a.m., consumer sentiment at 9:55 a.m., new home sales and the FHFA house price index, both at 10 a.m., petroleum inventories at 10:30 a.m. and natural gas inventories at noon. Busy busy, since all markets and governments are closed Thursday for Thanksgiving, so some Thursday reports have been pushed back a day.

Plus, Treasury will announce results of the 3-month and 6-month T-bill auctions at 11 a.m., of of the 7-year T-note auction at 1 p.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 February 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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