Friday, May 20, 2011

5/23 Almanac

On Monday, May 23: A bit of fluffery from the Chicagoland Fed.

There are 26 trading days before the June options expire, 54 the July, 89 the August and 117 the September.

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


Blue chip stocks (SPY) closed the latest regular session down 0.8% from the prior close. During the day SPY traversed 1.0% in a net move down of 0.5%.

The day's extremes: Open $134.33, high $134.68, low $133.36, close $133.61.

SPY closed below the DeMark pivots after trading within their range. The next DeMark pivots are $132.83-$134.15.

In total, 2.8 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 2.11%, three basis points lower than the prior trading day.

Econ reports:

The Chicago Federal Reserve Bank releases an index of national economic activity and inflation tendencies. Not well known. Not broadly followed. Not a market mover. However, unlike the Philly Fed index and the Empire State manufacturing survey, this report from Chicago is at least national rather than regional. Out at 8:30 a.m. Eastern.

Treasury auctions 3- and 6-month bills at 11:30 a.m., and announces the 4-week bill funding needs at 11 a.m.

Fedsters: St. Louis Fed Pres. James Bullard gives a speech.

He's a nice man, I'm sure, and thoroughly competent in his job. But, he doesn’t have a seat and vote on the monetary policy committee and so his words lack gravitas for traders. Bullard took office under President George W. Bush. He is a child of the Fed system.

The Federal Reserve maintains an archive, where it posts transcripts of speeches and testimony within a few days of the event.

As the week progresses, look for new home sales on Tuesday, durable goods on Wednesday, gross domestic product on Thursday, and personal income and outlays along with pending home sales on Friday.

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

Enjoy the weekend!

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