Thursday, July 14, 2011

7/15 Almanac

On Friday, July 15: Inflation, industrial production.

This is the last trading day before the July options expire. There are 36 trading days before the August options expire, 64 the September and 99 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 1.6% in a net move down of 0.9%.

The day's extremes: Open $132.17, high $132.78, low $130.68, close $130.93.

SPY closed within the DeMark pivots after trading both above and below their range. The next DeMark pivots are $129.76-$131.86.

In total, 2.8 billion shares were traded on the three major U.S. stock exchanges, 2% more than on the prior trading day.

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

Econ reports:

The consumer price index is out at 8:30 a.m. Eastern. Inflation has again become a political football amid claims that the Feds efforts to stimulate the economy will lead to runaway inflation, and proposals to reduce costs on the national Social Security pension system by making its cost-of-living adjustments less sensistive to inflation.

The potential market shaker of the day is industrial production, out at 9:15 a.m.

Also look for the Empire State Manufacturing Survey -- a regional study with national implications -- at 8:30 a.m., and consumer sentiment at 9:55 a.m.

No Fedsters speaking on Friday -- early weekend? The Federal Reserve maintains an archive of speeches and testimony.

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.

Good trading!

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