Monday, December 13, 2010

12/14 Almanac

On Tuesday, Dec. 14: Producer prices, retail sales, Fed announcement.

There are 4 days before the December options expire, 39 the January and 67 the February.

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


Blue chip stocks (SPY) closed the latest regular session up 0.3% from the prior close. During the day SPY traversed 0.4% in a net move down of 0.4%.

The day's extremes: Open $125.05, high $125.20, low $124.67, close $124.56.

SPY closed within the DeMark pivots after trading above their range. The next DeMark pivots are $124.35-$124.88.

In total, 2.7 billion shares were traded on the three major U.S. stock exchange, 7% more than on the prior trading day.

Five-year bond yields imply inflation at 1.86%, up 2 basis points from the prior trading day.

Econ reports:

Three potential big-time market movers out on Tuesday: The Labor Department's producer price index and the Census Bureau's retail sales report, both out at 8:30 a.m. Eastern, and the Federal Open Market Committee meeting announcement, out at 2:15 p.m.

Producer prices are an inflation measure, except a step back from the consumer prices, out on Wednesday. Retail sales are a broad measure of whether we're shopping 'till we drop for the sake of the good old economy rah rah. The FOMC announcement lies behind everything, like the signals produced by the Big Bang that radio-telescopes pick up from everywhere in the sky..

Also, two weekly retail reports: ICSC-Goldman sales at major retail chains, at 7:45 a.m., and the Redbook counterpart at 8:55 a.m., and the Census Bureau releases a report on business inventories at 10 a.m.

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:
  • FTR "income play" exit. The stock is ex-dividend and in bear phase, but the price hasn't fallen. The fundamentals are weak. Analysis.
  • INTC re-entry as an earnings play. Analysis.

Click here for stocks on my watchlists.

Good trading!

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