Thursday, November 4, 2010

11/5 Almanac

On Friday, Nov. 5: Employment.

There are 15 days before the November options expire, 43 the December and 78 the January.

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


Stats

Blue chip stocks (SPY) closed the latest regular session up 1.9% from the prior close. During the day SPY traversed 1% in a net move up of 0.8%.

The day's extremes: Open $121.28, high $122.32, low $121.13, close $122.26.

SPY traded entirely above the DeMark pivots. The next DeMark pivots are $121.70-$122.89.

In total, 3.9 billion shares were traded on the three major U.S. stock exchange, 27% more than on the prior trading day.

Five-year bond yields imply inflation at 1.63%.


Econ reports:

The Labor Department reports on employment and unemployment at 8:30 a.m. Eastern. This is the 800-pound gorilla of economic reports, moving markets and grinding politicians into electoral dust.

The Realtors release their pending home sales index at 12:30 p.m. It's a leading indicator for existing home sales.

The Fed tells us how indebted we are, at 3 p.m.

Speaking of the Fed, the Fedsters are speaking. The two most interesting are Chairman Bernanke, at 2 p.m., and the lone inflation-hawk dissenter on the FOMC, Thomas Hoenig, at 9:30 a.m.


Trading Calendar:

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


What I'm looking for:
  • Monitoring existing positions.


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


Good trading!





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