Thursday, February 24, 2011

2/25 Almanac

On Friday, Feb. 25: Gross domestic product.

There are 22 days before March options expire, 50 the April and 85 the May.

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


Blue chip stocks (SPY) closed the latest regular session down 0.1% from the prior close. During the day SPY traversed 1.3% in a net move up of 0.04%.

The day's extremes: Open $130.88, high $131.44, low $129.70, close $131.93.

SPY traded entirely within the DeMark pivots. The next DeMark pivots are $130.32-$132.06.

In total, 3.3 billion shares were traded on the three major U.S. stock exchange, 13% fewer than on the prior trading day.

Five-year bond yields imply inflation at 2.63%, five basis points more than on the prior trading day.

Econ reports:

The Commerce Dept. takes a second stab at the 4th quarter gross domestic production, releasing the preliminary GDP at 8:30 a.m. Eastern. The final number for the quarter will be out next month. GDP is this slow-moving bemouth of an econ report that can move markets quickly if it caries from expectations.

Also, the Reuter's/University of Michigan consumer sentiment survey will be out at 9:55 a.m. Ready to shop 'till you drop? This report will tell all.

Fed Vice-chair Janet Yellen gives a speech. She 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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