5/27 Almanac

On Friday, May 27: Income and outlays, pending home sales.

There are 22 trading days before the June options expire, 50 the July, 85 the August and 113 the September.

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


Stats

Blue chip stocks (SPY) closed the latest regular session up 0.5% from the prior close. During the day SPY traversed 1.1% in a net move up of 0.7%.

The day's extremes: Open $132.03, high $133.24, low $131.78, close $133.00.

SPY closed within the DeMark pivots after trading below their range. The next DeMark pivots are $132.39-$133.85.

In total, 2.8 billion shares were traded on the three major U.S. stock exchanges, 2% fewer than on the prior trading day.

Five-year bond yields imply inflation at 2.12%, unchanged from the prior trading day.


Econ reports:

The U.S. bond markets will close early, at 2 p.m. Eastern, for the Memorial Day holiday. Stocks will close at the regular time, 4 p.m.

To keep holiday-bound traders on their toes, there are two potential market-movers on the calendar.

The Commerce Department releases personal income and outlays at 8:30 a.m. These are the numbers from which the savings rate is derived. And savings, of course, is an important indicator of confidence in the economy and the public's perception of how their lives are going.

The National Association of Realtors follows with its index of pending home sales -- contracted but not closed -- at 10 a.m.

A third report, consumer sentiment, has less impact but sometimes it can guide trading decision. The Reuters/University of Michigan index will be released at 9:55 a.m.

No Fedsters. 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 September or later straddles, strangles, calls and puts. And of course, shares are good at any time.


Good trading!