Tuesday, May 31, 2011

6/1 Almanac

On Wednesday, June 1: Manufacturing index.

There are 17 trading days before the June options expire, 45 the July, 80 the August and 108 the September.

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


Blue chip stocks (SPY) closed the latest regular session up 1.0% from the prior close. During the day SPY traversed 0.8% in a net move up of 0.1%.

The day's extremes: Open $134.77, high $134.92, low $133.84, close $134.90.

SPY closed above the DeMark pivots after trading within their range. The next DeMark pivots are $134.37-$135.45.

In total, 3.7 billion shares were traded on the three major U.S. stock exchanges, 63% more than on the prior trading day.

Five-year bond yields imply inflation at 2.08%, three basis points lower than the prior trading day.

Econ reports:

The Institute of Supply Management releases its index of manufacturing activity at 10 a.m. Eastern. It is the most likely market-mover of the day.

Also out, some other potential movers: Auto sales throughout the day, construction spending at 10 a.m., and an employment report by the payroll company ADP, at 8:15 a.m. The ADP report serves as a sneak preview to the Labor Department's unemployment and employment release on Friday.

Challenger, Gray & Christmas releases its layoff report at 7:30 a.m., and there will be a pair of weekly retail reports: ICSC-Goldman at 7:45 a.m. and Redbook at 8:15 a.m.

Treasury auctions 4-week and 52-week bills at 11:30 a.m.

A voting money-policy Fedster and two alternates give speeches.

Fed Gov. Daniel Tarullo has the vote. He was appointed by President Barack Obama. His resume shows ties to the Clinton administraton and the late Sen. Teddy Kennedy.

San Francisco Fed Pres John Williams and Cleveland Fed Pres. Sandra Pianalto are the alternates; they get seats at the table but no votes.

Williams also took office under Obama, and Pianalto, under President George W. Bush. Both came up through the Fed system. Additionally, Pianalto early on had institutional ties to the U.S. House Budget Committee.

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

Good trading!

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