3/2 Almanac

On Wednesday, March 2: Employment preview, Beige Book.

There are 17 days before March options expire, 45 the April and 80 the May.

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



Stats

Blue chip stocks (SPY) closed the latest regular session down 1.7% from the prior close. During the day SPY traversed 2.1% in a net move down of 2.0%.

The day's extremes: Open $133.57, high $133.69, low $130.89, close $133.93.

SPY closed below the DeMark pivots after trading within their range. The next DeMark pivots are $129.51-$132.31.

In total, 3.4 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 2.59%, four basis points more than on the prior trading day.


Econ reports:

ADP (the payroll people) releases its monthly employment report at 8:15 a.m. Eastern, a preview of Friday's federal employment/unemployment numbers.

The Federal Reserve comes out with the Beige Book narrative on regional economic conditions at 2 p.m. Petroleum inventories are out at 10:30 a.m.

Lesser releases: Mortgage Bankers give a weekly preview of mortgage applications at 7:30 a.m., and the Challenger job-cut report is out at 7:30 a.m.

Three Fedsters show their faces in public. Fed Chairman Bernanke at 10 a.m. testifies for a second day on monetary policy, this time on the House side of the Capitol. Kansas City Fed Pres. Thomas Hoenig and Atlanta Fed Pres. Dennis Lockhart are also out and about.

Lockhart is an alternate (non-voting) member of the Federal Open Market Committee. Hoenig has no voice in setting monetary policy, although last year he was the FOMC's leading inflation pessimist and so is worth listening to just to get his take on things.

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


Good trading!