Wednesday, March 16, 2011

3/17 Almanac

On Thursday, March 17: Inflation (deflation?), industrial production.

There are two days before March options expire, 30 the April and 65 the May.

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


Blue chip stocks (SPY) closed the latest regular session down 1.9% from the prior close. During the day SPY traversed 2.6% in a net move down of 1.5%.

The day's extremes: Open $128.15, high $128.57, low $125.28, close $126.18.

SPY closed below the DeMark pivots after trading within their range. The next DeMark pivots are $124.09-$127.38.

In total, 4 billion shares were traded on the three major U.S. stock exchange, 11% more than on the prior trading day.

Five-year bond yields imply inflation at 2.57%, two basis points lower than on the prior trading day.

Econ reports:

The Labor Dept. comes out with a one-two punch at 8:30 a.m. Eastern: The consumer price index and weekly jobless claims.

The Federal Reserve Board follows with industrial production at 9:15 a.m. and the Philadelphia Fed Survey at 10 a.m. The Philly Fed report measures business outlook, the idea being that Philadelphia is in the nation's manufacturing heartland, and so the outlook there echoes across the land.

All of those are potential market movers.

Lesser reports: Leading indicators (one of my favorites) at 10 a.m., natural gas at 10:30 a.m., the Fed balance sheet and the money supply (another of my favorites) at 4:30 p.m.

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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