Tuesday, May 17, 2011

5/18 Almanac

On Wednesday, May 18: Money policy minutes.

There are three days before May options expire, 31 the June, 59 the July and 94 the August.

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


Blue chip stocks (SPY) closed the latest regular session down 2¢ from the prior close. During the day SPY traversed 0.9% in a net move up of 0.4%.

The day's extremes: Open $132.69, high $133.35, low $132.12, close $133.17.

SPY traded below the DeMark pivots before closing within their range. The next DeMark pivots are $132.65-$133.88.

In total, 3.2 billion shares were traded on the three major U.S. stock exchanges, 9% more than on the prior trading day.

Five-year bond yields imply inflation at 2.13%, three basis points lower than the prior trading day.

Econ reports:

The Federal Open Market Committee releases minutes of its most recent money-policy meeting at 2 p.m. Eastern. The most likely market impact will come if there are detectable signs of a split or impatience over the present loose-money policy.

Petroleum inventories will be announced at 10:30 a.m., and the Mortgage Bankers will release their report on purchase applications at 7 a.m.

St. Louis Fed Pres. James Bullard gives a speech. He doesn’t have a seat on the monetary policy committee. Bullard took office under President George W. Bush after rising through the Fed system.

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!

No comments:

Post a Comment