Thursday, June 2, 2011

6/3 Almanac

On Friday, June 3: Unemployment and employment.

There are 15 trading days before the June options expire, 43 the July, 78 the August and 106 the September.

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


Blue chip stocks (SPY) closed the latest regular session down 3¢ from the prior close. During the day SPY traversed 1.0% in a net move down of 0.2%.

The day's extremes: Open $131.96, high $132.24, low $130.96, close $131.73.

SPY traded entirely within the DeMark pivots. The next DeMark pivots are $130.71-$131.99.

In total, 2.9 billion shares were traded on the three major U.S. stock exchanges, 12% fewer than on the prior trading day.

Five-year bond yields imply inflation at 2.09%, three basis points higher than the prior trading day.

Econ reports:

The Labor Department releases the monthly unemployment rate and detailed statistics about employment at 8:30 a.m. Eastern. This is the most followed by the general public of all the economic indicators. Bad news here can spread rapidly, as people's sense of well-being weakens and, as a consequence, they cut back on spending.

Overshadowed but also of importance: The Institute of Supply Management's index of the non-manufacturing segments of the economy, at 10 a.m.

Two Fedsters speaking:

Fed Gov. Daniel Tarullo has a seat and vote on the Federal Open Market Committee, which sets monetary policy. He was appointed by President Barack Obama. His resume shows institutional ties to the Clinton administraton and the late Sen. Teddy Kennedy.

Boston Fed Pres. Eric Rosengren has no formal say on monetary policy. He took office under President George W. Bush and came up through the Fed system as a research economist. He has served as an advisor on Japanese banking.

So, I shall listen closely to Tarullo and pretty much ignore Rosengren.

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 July 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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