Friday, July 8, 2011

7/11 Almanac

On Monday, July 11: "Form is Emptiness. Emptiness is Form." -- The Heart Sutra.

There are five trading days before the July options expire, 40 the August, 68 the September and 103 the October.

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


Blue chip stocks (SPY) closed the latest regular session down 0.7% from the prior close. During the day SPY traversed 1.5% in a net move up of 0.4%.

The day's extremes: Open $133.83, high $135.36, low $133.39, close $134.40.

SPY closed below the DeMark pivots after trading within their range. The next DeMark pivots are $133.90-$135.87.

In total, 2.4 billion shares were traded on the three major U.S. stock exchanges, 13% fewer than on the prior trading day.

Five-year bond yields imply inflation at 2.12%, seven basis points lower than on the prior trading day.

Econ reports:

Emptiness pretty much describes Monday as an econ day. Treasury auctions 3- and 6-month bills and announces funding requirements for 4-week bills. Otherwise, the cupboard is bare.

But, the week quickly gets interesting, with international trade and the money policy meeting minutes on Tuesday, Congressional testimony by Fed Chairman Ben Bernanke on Wednesday, producer prices, retail sales and jobless claims on Thursday, and the two I's -- industrial production and inflation -- on Friday.

Slow start. Big week.

No Fedsters at the podium on Monday (or all week, actually, except for Bernanke). 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 August vertical, diagonal, calendar and butterfly spreads, iron condors and covered calls, as well as October or later straddles, strangles, calls and puts. And of course, shares are good at any time.

Enjoy the weekend!

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