Thursday, January 27, 2011

1/28 Almanac

On Friday, Jan. 28: Gross domestic product.

There are 22 days before the February options expire, 50 the March and 78 the April.

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



Stats

Blue chip stocks (SPY) closed the latest regular session up 0.3% from the prior close. During the day SPY traversed 0.6% in a net move up of 0.2%.

The day's extremes: Open $129.70, high $130.18, low $129.47, close $129.99.

SPY closed above the DeMark pivots. The next DeMark pivots are $129.73-$130.44.

In total, 3 billion shares were traded on the three major U.S. stock exchange, 4% fewer than on the prior trading day.

Five-year bond yields imply inflation at 2.22%, down one basis point from the prior trading day.


Econ reports:

The Commerce Department gives the first of three looks at gross domestic product for the 4th quarter of 2011. The advance numbers will be released at 8:30 a.m. Eastern. Look for revisions: The preliminary numbers, on Feb. 25, and final numbers on March 25.

GDP is the great grandparent of economic reports, the most comprehensive of the lot.

Also out at 8:30 a.m., the employment cost index from the Labor Dept. tells what it costs to hire workers: wages, salaries, benefits -- although nothing about misappropriated office supplies. In some ways it's a proto-inflation measure. Worker compensation is always a huge portion of the the cost of manufacture. If employment costs go up, prices seem likely to follow.

The day's third report, consumer sentiment from the University of Michigan survey, measures our level of comfort with shopping till we drop for the sake of the greater good. Out at 9:55 a.m.


Trading Calendar:

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


What I'm looking for:
  • AAPL: Bull entry on an adx uptick.
  • XLE: Possibly add to my existing positions.

Click here for stocks on my Watchlist.


Good trading!

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