Tuesday, July 26, 2011

7/27 Almanac

On Wednesday, July 27: Durable goods.

There are 24 trading days before the August options expire, 52 the September, 87 the October and 115 the November.

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 0.7% in a net move down of 0.3%.

The day's extremes: Open $133.74, high $133.96, low $133.03, close $133.33.

SPY closed below the DeMark pivots after trading within their range. The next DeMark pivots are $132.72-$133.65.

In total, 2.5 billion shares were traded on the three major U.S. stock exchanges, 7% more than on the prior trading day.

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

Econ reports:

The Census Bureau reports on durable good orders at 8:30 a.m. Eastern. This is a key indicator of the pace of economic recovery. Durables are expensive items. If people and companies are buying them, then they have to be pretty confident about their financial future.

The Mortgage Bankers do their weekly report on purchase applications at 7 a.m. (it's a leading indicator for housing), the petroleum inventories are out a 10:30 a.m., and the Fed's Beige Book survey of economic conditions around the country, at 2 p.m.

Treasury auctions 5-year notes at 1 p.m.

No Fedsters at the podium. 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 November or later straddles, strangles, calls and puts. And of course, shares are good at any time.

Good trading!

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