Wednesday, June 8, 2011

6/9 Almanac

On Thursday, June 9: International trade, jobless claims.

There are nine trading days before the June options expire, 37 the July, 72 the August and 100 the September.

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


Blue chip stocks (SPY) closed the latest regular session down 0.4% from the prior close. During the day SPY traversed 0.8% in a net move down of 0.3%.

The day's extremes: Open $128.76, high $129.19, low $128.18, close $128.42.

SPY closed within the DeMark pivots after trading below their range. The next DeMark pivots are $127.80-$128.81.

In total, 3.1 billion shares were traded on the three major U.S. stock exchanges, 13% 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 Commerce Department reports on international trade and the Labor Department tallies the week's jobless claims, both at 8:30 a.m. Eastern.

International trade is what economists are referring to when they talk about the trade deficit: How much more stuff we're buying from China compared to what they're buying from us.

Weekly jobless claims has gained potential as a market-mover the past week or so with the appearance of signs that economic activity is again slowing.

Also out: Wholesale trade at 10 a.m., and the natural gas report at 10:30 a.m. The Federal Reserve releases its balance sheet and money supply numbers at 4:30 p.m.

Treasury auctions 30-year bonds at 1 p.m., and announces funding requirements for 3- and 6-month bonds at 11 a.m.

Philadelphia Fed Pres. Charles Plosser and Fed Vice-Chairwoman Janet Yellen give a speeches. Both have votes in setting monetary policy.

Plosser took office under President George W. Bush. His resume shows institutional ties to Chase Manhattan Bank, Eastman Kodak Co., Wyatt Co., ViaHealth Inc., RGS Energy Group Inc. and Chase Manhattan Bank, all in consulting or advisory capacities. He also co-chaired the Shadow Open Market Committee, which second-guessed the Fed’s monetary policy.

Yellen was appointed by President Barack Obama. Her resume shows institutional ties to the Clinton administration and the Council on Foreign Relations.

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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