Friday, September 30, 2011

10/3 Almanac

On Monday, Oct. 3: Manufacturing index.

There are 19 trading days before the October options expire, 47 the November, 75 the December and 110 the January.

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


Blue chip stocks (SPY) closed the latest regular session down 2.5% from the prior close. During the day SPY traversed 2.1% in a net move down of 1.1%.

The day's extremes: Open $114.45, high $115.45, low $113.07, close $113.15.

SPY closed within the DeMark pivots after trading above their range. The next DeMark pivots are $111.92-$114.30.

In total, 3.3 billion shares were traded on the three major U.S. stock exchanges, 3% fewer than on the prior trading day.

Implied volatility suggests a 68% chance that SPY will close, 30 days from now, between $99.22 and $127.08.

Bond yields imply that inflation, over the next five years, will average 1.57%, six basis points lower than the prior trading day.

Econ reports:

The Institute of Supply Management releases its manufacturing index at 10 a.m. Eastern. Construction spending is also out at 10, and auto sales will be announced throughout the day.

Treasury auctions 3- and 6-month bills at 11:30 a.m., and announces funding requirements for 4-week bills at 11 a.m.

At the podium, Richmond Fed Pres. Jeffrey Lacker. Lacker is an alternate member of the monetary committee and lacks a vote on policy. He took office under President George W. Bush. Lacker taught economics at Purdue University before coming to work for the Richmond Federal Reserve Bank in 1989.

The Federal Reserve maintains an archive of speeches and testimony.

Later in the week, Bernanke speaks to a Congressional joint committee on the economy on Tuesday, jobless claims are out on Thursday and the employment report on Friday.

Trading Calendar:

By my rules, at this point in the cycle I can trade October vertical and calendar spreads, as well as January or later straddles, strangles, calls and puts. And of course, shares are good at any time.

Enjoy the weekend!

No comments:

Post a Comment