Friday, March 25, 2011

3/28 Almanac

On Monday, March 28: Income and outlays, pending home sales.

There are 19 days before April options expire, 54 the May and 82 the June.

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


Blue chip stocks (SPY) closed the latest regular session up 0.3% from the prior close. During the day SPY traversed 0.8% in a net move up of 0.05%.

The day's extremes: Open $131.24, high $131.87, low $130.89, close $131.30.

SPY closed within the DeMark pivots after trading above their range. The next DeMark pivots are $131.10-$132.08.

In total, 2.6 billion shares were traded on the three major U.S. stock exchanges, 8% fewer than on the prior trading day.

Five-year bond yields imply inflation at 2.64%, seven basis points lower than the prior trading day.

Econ reports:

The Commerce Dept. reports on personal income and outlays at 8:30 a.m. Eastern. From those figures comes the savings rate, an important number as the economic recovery continues. Will you start shopping again? Or are you going to continue to sit on your cash?

The Realtors report on pending home sales at 10 a.m. It tallies deals where the contract has been signed but the transaction hasn't closed.

Treasury auctions 3- and 6-month bills at 11:30 a.m., and 2-year notes at 1 p.m.

Chicago Fed Pres. Charles Evans gives a speech, as does Atlanta Fed Pres. Dennis Lockhart. Evans votes on the Federal Open Market Committee. Lockhart doesn't.

The Federal Reserve often posts transcripts of speeches and testimony within a few days of the event.

Later in the week, look for consumer confidence on Tuesday, weekly jobless claims on Thursday, and the unemployment rate and manufacturing index on Friday.

Trading Calendar:

It's that awkward time for verticals and other strategies that benefit from time decay. The April expiration is too near, and the May expiration, too far.

By my rules, at this point in the cycle I can trade June or later straddles, calls and puts. And of course, shares are good at any time.

Enjoy the weekend!

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