Wednesday, July 27, 2011

7/28 Almanac

On Thursday, July 28: Jobless claims, pending home sales.

There are 23 trading days before the August options expire, 51 the September, 86 the October and 114 the November.

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


Blue chip stocks (SPY) closed the latest regular session down 2.1% from the prior close. During the day SPY traversed 1.7% in a net move down of 1.5%.

The day's extremes: Open $132.59, high $132.63, low $130.43, close $130.60.

SPY traded entirely below the DeMark pivots. The next DeMark pivots are $129.42-$131.62.

In total, 3.4 billion shares were traded on the three major U.S. stock exchanges, 35% more than on the prior trading day.

Five-year bond yields imply inflation at 2.17%, five basis points higher than the prior trading day.

Econ reports:

Two big-time potential market movers: Weekly jobless claims at 8:30 a.m. Eastern, and pending home sales at 10 a.m.

Also out, the Bloomberg consumer comfort index at 9:45 a.m., natural gas at 10:30 a.m., and the Fed's weekly double whammy -- balance sheet and money supply -- at 4 p.m.

Treasury auctions 7-year notes at 1 p.m., and announces funding requirements for 3- and 6-month bills at 11 a.m.

Two Fedsters at the podium, both alternative members of the Federal Open Markets Committee. Each has a voice in monetary policy, but no vote.

Richmond Fed Pres. Jeffrey Lacker took office under President George W. Bush. His his institutional ties are academic.

San Francisco Fed Pres John Williams took office under President Barack Obama. He came up through the Fed system.

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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