Tuesday, June 7, 2011

6/8 Almanac

On Wednesday, June 8: Beige Book, petroleum inventories.

There are 10 trading days before the June options expire, 38 the July, 73 the August and 101 the September.

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


Blue chip stocks (SPY) closed the latest regular session down 0.1% from the prior close. During the day SPY traversed 0.9% in a net move down of 0.6%.

The day's extremes: Open $129.70, high $130.07, low $128.85, close $128.96.

SPY closed within the DeMark pivots after trading above their range. The next DeMark pivots are $128.30-$129.52.

In total, 2.7 billion shares were traded on the three major U.S. stock exchanges, 4% fewer than on the prior trading day.

Five-year bond yields imply inflation at 2.11%, two basis points higher than the prior trading day.

Econ reports:

The Federal Reserve releases its Beige Book, a narrative report on economic conditions in each of the Federal Reserve Bank districts. Not really a market-mover, but it can be a real page-turner at times. Out at 2 p.m. Eastern.

Weekly petroleum inventories will be released at 10:30 a.m., a big deal for the energy sector.

Also out, Mortgage Bankers issue a weekly report on home purchase applications, a leading indicator for the housing market, at 7 a.m., and a Census Bureau quarterly survey of the service sector, at 10 a.m.

Treasury auctions 10-year notes at 1 p.m.

One Fedster speaking: Kansas City Fed Pres. Tom Hoenig, inflation hawk. Hoenig lacks a seat on the policy-setting Federal Open Market Committee, and so has no vote on money policy. He took office under President George H.W. Bush (Dad, not the kid) 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 July vertical, calendar, diagonal and butterfly spreads, iron condors and covered calls, 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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