Friday, December 10, 2010

12/13 Almanac

On Monday, Dec. 13: No economic reports, but expect an army of big guns later in the week.

There are 5 days before the December options expire, 40 the January and 68 the February.

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


Blue chip stocks (SPY) closed the latest regular session up 0.6% from the prior close. During the day SPY traversed 0.7% in a net move up of 0.3%.

The day's extremes: Open $124.14, high $124.60, low $123.73, close $124.48.

SPY closed above the DeMark pivots after trading within their range. The next DeMark pivots are $124.11-$124.98.

In total, 2.5 billion shares were traded on the three major U.S. stock exchange, 7% fewer than on the prior trading day.

Five-year bond yields imply inflation at 1.84%, up 1 basis point from the prior trading day.

Econ reports:

There are no economic reports scheduled for release. Treasury announces results of the 4-week bill auction at 11 a.m.

Later in the week, a whole army of big guns: Producer prices, retail sales and a Federal Open Market Committee meeting announcement on Tuesday, consumer prices and industrial production on Wednesday, and housing starts and the Philly Fed survey on Thursday.

Not a market mover, but still one of my favorites: Leading indicators on Friday.

And not just a Friday, but a Quadruple Witching Friday, a day when stock index futures and options, stock options and single stock futures all expire.

I shall hang garlic over my doors and trade while hiding under my bed, clutching a lucky rabbit's foot.

Trading Calendar:

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

What I'm looking for:
  • A new paradigm for choosing income plays. Love the dividends! Hate the capital loss!! Musings on the subject.

Click here for stocks on my watchlists.

Enjoy the weekend!

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