Wednesday, April 27, 2011

4/28 Almanac

On Thursday, April 28: GDP, weekly jobless claims, pending home sales.

There are 23 days before May options expire, 51 the June and 79 the July.

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


Blue chip stocks (SPY) closed the latest regular session up 0.7% from the prior close. During the day SPY traversed 1.0% in a net move up of 0.5%.

The day's extremes: Open $135.05, high $135.87, low $134.50, close $135.64.

SPY closed above the DeMark pivots after trading within their range. The next DeMark pivots are $135.09-$136.46.

In total, 3.1 billion shares were traded on the three major U.S. stock exchanges, 5% more than on the prior trading day.

Five-year bond yields imply inflation at 2.39%, five basis points higher than the prior trading day.

Econ reports:

The first look at 1st quarter gross domestic product will be released at 8:30 a.m. Eastern, as will the weekly jobless claims report. Both are key indicators of the pace at which the economy is recovering.

The Realtors will publish figures on pending home sales, where the contract has been signed but not closed, at 10 a.m.

All three are potential market-movers.

The natural gas report will be out at 10:30 a.m.

The Federal Reserve will cap the day with its weekly reports: The balance sheet and the money supply.

Treasury auctions 7-year notes at 1 p.m.

Fed Gov. Elizabeth Duke, who has a vote in setting monetary policy, will make a public appearance. She was appointed by President George W. Bush. Her resume shows institutional ties to the American Bankers Association, the Virginia Bankers Association and several Virginia Banks, including the giant Wachovia Bank, which was taken over by Wells Fargo during the 2008 financial crisis.

The Federal Reserve maintains an archive where it 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 May vertical, calendar, diagonal and butterfly spreads, iron condors and covered calls, as well as July or later straddles, strangles, calls and puts. And of course, shares are good at any time.

Good trading!

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