Thursday, December 16, 2010

12/17 Almanac

On Friday, Dec. 17: Leading indicators.

This is the final day for trading December options. January options. There are 36 days before the January options expire, and 64 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 0.9% in a net move up of 0.5%.

The day's extremes: Open $124.18, high $124.91, low $123.75, close $124.82.

SPY closed above the DeMark pivots after trading within their range. The next DeMark pivots are $124.29-$125.45.

In total, 2.7 billion shares were traded on the three major U.S. stock exchange, 11% fewer than on the prior trading day.

Five-year bond yields imply inflation at 1.98%, unchanged from the prior trading day.

Econ reports:

The leading indicators report will be released at 10 a.m. Eastern. It's a big picture itemand rarely, maybe never, moves the markets. But I find it to be a good predictor of the macro-course of the economy, and therefore, interesting.

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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