Tuesday, March 15, 2011

3/16 Almanac

On Wednesday, March 16: Housing starts, producer prices.

There are three days before March options expire, 31 the April and 66 the May.

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


Blue chip stocks (SPY) closed the latest regular session down 1.2% from the prior close. During the day SPY traversed 2.2% in a net move up of 1.6%.

The day's extremes: Open $126.59, high $129.33, low $126.50, close $128.56.

SPY traded entirely below the DeMark pivots. The next DeMark pivots are $127.53-$130.36.

In total, 3.6 billion shares were traded on the three major U.S. stock exchange, 31% more than on the prior trading day.

Five-year bond yields imply inflation at 2.59%, two basis points lower than on the prior trading day.

Econ reports:

The federales release two major reports and a small fry at 8:30 a.m. Eastern. Housing starts reports on how many times the shovel bit into the dirt for the first time to build a residence. The producer price index tells what it costs capitalists to make things that you and I later buy at prices reported in the consumer price index, to be released on Thursday.

The least significant report in the morning dump is the current account balance of trade. I say least significant -- it can on occasion be very significant for bond holders because of the trade deficit's impact on the value of the dollar against foreign currencies.

Petroleum inventories are out at 10:30 a.m. -- a big deal for the energy sector.

And last -- also least -- the early-to-rise Mortgage Bankers release their purchase applications at 7 a.m. This is a leading indicator for the housing market.

No Fedsters are speaking, but if they were...

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 April diagonal, butterfly, vertical 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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