Thursday, March 24, 2011

3/25 Almanac

On Friday, March 25: Fourth quarter final GDP.

There are 22 days before April options expire, 57 the May and 85 the June.

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


Blue chip stocks (SPY) closed the latest regular session up 1.0% from the prior close. During the day SPY traversed 1.1% in a net move up of 0.4%.

The day's extremes: Open $130.40, high $131.09, low $129.67, close $130.90.

SPY closed above the DeMark pivots after trading within their range. The next DeMark pivots are $130.29-$131.71.

In total, 2.9 billion shares were traded on the three major U.S. stock exchanges, 7% more than on the prior trading day.

Five-year bond yields imply inflation at 2.71%, five basis points higher than the prior trading day.

Econ reports:

The great-grandparent of all econ reports, gross domestic product, will be released at 8:30 a.m. Eastern. The GDP is so huge, it gets released three times each quarter, each iteration being in theory more precise. This one is the final release for the 4th quarter of 2010.

The Reuters/U of Michigan consumer confidence report is out at 9:55 a.m., and the Commerce Dept. issues its quarterly report on corporate profits at 8:30 a.m.

With the advent of spring, the Fedsters are blossoming all over the country like daffodils in bloom, speeches springing up about them like fresh growths of leaves. If only they peppered their talks with similar lame metaphors.

Three voting members of the Federal Open Market Committee will speak: Chicago Fed Pres. Charles Evens, Minneapolis Fed Pres. Narayana Kocherlakota and Philadelphia Fed Pres. Charles Plosser. One alternative member, Atlanta Fed Pres. Dennis Lockhart, will also give a speech.

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

Good trading!

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