Friday, October 7, 2011

10/10 Almanac

On Monday, Oct. 10: Bonds take a holiday; stocks don't.

There are 12 trading days before the October options expire, 40 the November, 68 the December and 103 the January.

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 1.9% in a net move down of 1.3%.

The day's extremes: Open $117.17, high $117.25, low $115.06, close $115.71.

SPY traded entirely within the DeMark pivots. The next DeMark pivots are $114.29-$116.48.

In total, 3.2 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 $103.62 and $128.80. The range is +/- $12.09 from the last closing price, 2¢ narrower than on the prior trading day.

Bond yields imply that inflation, over the next five years, will average 1.73%, six basis points higher than the prior trading day.

Econ reports:

U.S. Bond markets and banks observe the Columbus holiday on Monday. But the busy beavers at the stock and options exchanges keep their noses to the grindstone and will trade.

There are, however, no economics reports in the United States.

Forex will trade, although activity might be slower with the U.S. banks being closed.

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 November vertical, calendar, diagonal and butterfly spreads, iron condors and covered calls, as well as January or later straddles, strangles, calls and puts. And of course, shares are good at any time.

Enjoy the weekend!

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