Tuesday, December 21, 2010

12/22 Almanac

On Wednesday, Dec. 22: GDP, existing home sales.

There are 31 days before the January options expire, 59 the February and 87 the March.

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 0.5% in a net move up of 0.3%.

The day's extremes: Open $124.99, high $125.47, low $124.88, close $125.39.

SPY traded entirely above the DeMark pivots. The next DeMark pivots are $125.13-$125.73.

In total, 2.3 billion shares were traded on the three major U.S. stock exchange, 9% fewer than on the prior trading day.

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

Econ reports:

The final gross domestic product numbers for the third quarter will be released at 8:30 a.m. Eastern. This is the broadest measure of the U.S. economy, and has a huge time lag. The third quarter finals are coming out just nine days before the fourth quarter ends.

Another major report, existing home sales, will be released at 10 a.m. Most housing transactions are existing homes, not new construction, so this report gives the broadest measure of the state of the market. The FHFA house price index will be released simultaneously.

Also out: The mortgage bankers report on purchase applications (a leading indicator) at 7 a.m., the aggregate corporate profits report at 8:30 a.m. and petroleum inventories at 10:30 a.m.

The markets are closed on Friday for Christmas.

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, March straddles, calls and puts. And of course, shares are good at any time.

What I'm looking for:
  • INTC re-entry as an earnings play. Analysis.

Click here for stocks on my watchlists.

Good trading!

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