5/12 Almanac

On Thursday, May 12: Producer prices, retail sales, jobless claims.

There are nine days before May options expire, 37 the June, 65 the July and 100 the August.

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


Stats

Blue chip stocks (SPY) closed the latest regular session down 1.1% from the prior close. During the day SPY traversed 1.4% in a net move down of 0.9%.

The day's extremes: Open $135.67, high $135.69, low $133.82, close $134.44.

SPY closed within the DeMark pivots after trading both above and below their range. The next DeMark pivots are $133.20-$135.07.

In total, 3.2 billion shares were traded on the three major U.S. stock exchanges, 12% more than on the prior trading day.

Five-year bond yields imply inflation at 2.26%, 10 basis points lower than the prior trading day.


Econ reports:

A triple play at 8:30 a.m. Eastern.

The Labor Department releases producer price figures and weekly jobless claims, and Commerce reports on retail sales. Each has the capacity to cause big swings in the markets.

Commerce also reports on business inventories at 10 a.m., and Energy Department's Natural Gas Report comes out at 10:30 a.m.

The Federal Reserve releases its balance sheet and money supply numbers at 4:30 p.m.

Treasury auctions 30-year bonds at 1:00 p.m., and announces future auction plans for 3- and 6-month bills and 10-year tax-indexed bonds (TIPS) at 11 a.m.

Fed Chairman Ben Bernanke and one other Fedster will be roaming about.

Bernanke will testify before the Senate Banking Committee about the Dodd-Frank financial reform bill.

Philadelphia Fed Pres. Charles Plosser, who has a vote in setting monetary policy, gives a speech.

Plosser took office under President George W. Bush. His resume shows institutional ties to Chase Manhattan Bank, Eastman Kodak Co., Wyatt Co., ViaHealth Inc., RGS Energy Group Inc. and Chase Manhattan Bank, all in consulting or advisory capacities. He also co-chaired the Shadow Open Market Committee, which second-guessed the Fed’s monetary policy.

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 June vertical, calendar, diagonal and butterfly spreads, covered calls and iron condors, as well as August or later straddles, strangles, calls and puts. And of course, shares are good at any time.


Good trading!