Friday, January 28, 2011

1/31 Almanac

On Monday, Jan. 31: Personal income and consumption.

There are 19 days before the February options expire, 47 the March and 75 the April.

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



Stats

Blue chip stocks (SPY) closed the latest regular session down 1.8% from the prior close. During the day SPY traversed 2.2% in a net move down of 1.9%.

The day's extremes: Open $130.14, high $130.35, low $127.51, close $127.72.

SPY closed below the DeMark pivots after trading within their range. The next DeMark pivots are $126.20-$129.04.

In total, 3.6 billion shares were traded on the three major U.S. stock exchange, 21% more than on the prior trading day.

Five-year bond yields imply inflation at 2.25%, up three basis points from the prior trading day.


Econ reports:

The Commerce Department releases figures on personal income and consumption spending, both of which are crucial to the shop-till-you-drop theory of what drives the economy. Out at 8:30 a.m. Eastern. Sometimes a market mover.

The Institute of Supply Management releases its purchasing managers index of business conditions in Chicago at 9:45 a.m.. As goes Chicagoland, so goes the nation.

The Ag Department releases the farm prices report -- how much farmers are getting for what they grow -- at 3 p.m.

Treasury auctions 3- and 6-month bills at 11:30 a.m.

Atlanta Federal Reserve Bank President Dennis Lockhart, an alternate member of the money-policy committee, holds a discussion with students. He tends toward the inflation-optmistic side of the spectrum.

Later in the week, look for the ISM manufacturing index on Tuesday, jobless claims on Thursday, and the all-important government employment situation report (unemployment percentage) on Friday.


Trading Calendar:

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


What I'm looking for:
  • SBUX: Exit on retracement. Analysis.
  • XLE: Possibly add to my existing positions.

Click here for stocks on my Watchlist.


Enjoy the weekend!

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