Wednesday, February 16, 2011

2/17 Almanac

On Thursday, Feb. 17: Inflation, weekly jobless claims.

There are 2 days before the February options expire, 30 the March and 58 the April.

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 0.6% in a net move up of 0.3%.

The day's extremes: Open $133.46, high $134.01, low $133.19, close $133.85.

SPY closed above the DeMark pivots. The next DeMark pivots are $133.52-$134.34.

In total, 3.2 billion shares were traded on the three major U.S. stock exchange, 10% more than on the prior trading day.

Five-year bond yields imply inflation at 2.31%, unchanged from the prior trading day.

Econ reports:

The consumer price index and weekly jobless claims frame the economy at 8:30 a.m. Eastern, followed by the much-ignored-but-ever-fascinating leading indicators at 10 a.m.

The Philadelphia Federal Reserves business outlook survey will also be out at 10 a.m. It is an avatar for future industrial production (much as a Philly Cheese Steak is an avatar for future heartburn).

The natural gas report, a weekly big deal for energy, will be released at 10:30 a.m.

And at 4:30 p.m., the Federal Reserve's weekly outburst: The balance sheet and the money supply.

Treasury will auction 30-year inflation-protected TIPS at 1 p.m.

Also, a day of busy Fedsters: Fed Chair Bernanke testifies on the Hill, Atlanta Fed Pres Dennis Lockhart has a colloquy withe Irish ambassador ("And how is that economic collapse working out for you, Mr. Ambassador?"), and Dallas Fed Pres Richard Fisher and Chicago Fed Pres Charles Evans give speeches, separately. Bernanke, Eveans and Fisher vote on monetary policy; Lockhart doesn't.

The Federal Reserve often posts transcripts of speeches and testimony within a few days of the event.

Trading Calendar:

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

Good trading!

No comments:

Post a Comment