Tuesday, February 22, 2011

2/23 Almanac

On Wednesday, Feb. 23: Existing home sales.

There are 24 days before March options expire, 52 the April and 87 the May.

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


Blue chip stocks (SPY) closed the latest regular session down 2.0% from the prior close. During the day SPY traversed 2.3% in a net move down of 1.0%.

The day's extremes: Open $133.12, high $134.56, low $131.47, close $131.83.

SPY closed below the DeMark pivots after trading within their range. The next DeMark pivots are $130.11-$133.20.

In total, 3.5 billion shares were traded on the three major U.S. stock exchange, 9% more than on the prior trading day.

Five-year bond yields imply inflation at 2.48%, four basis points more than on the prior trading day.

Econ reports:

The National Association of Realtors releases existing home sales figures at 10:00 a.m. Eastern. This is the most significant of the housing releases, since most home sales are in fact resales -- someone has lived in the place before.

The Mortgage Bankers release their weekly purchase applications report at 7 a.m. It is considered to be a leading indicator for the housing market. It shows sales contracted for but not closed.

Also scheduled, two weekly retail reports: ICSC-Goldman store sales, and Redbook's report.

Treasury auctions four-week bills at 11:30 a.m., and five-year notes at 1 p.m.

Philadelphia Fed Pres. Charles Plosser gives a speech. He is a voting member of the Federal Open Market Committee.

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, May or later straddles, calls and puts. And of course, shares are good at any time.

Good trading!

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