Thursday, October 27, 2011

10/28 Almanac

On Friday, Oct. 28: Money in, money out.

There are 22 trading days before the November options expire, 50 the December, 85 the January and 113 the February.

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


Blue chip stocks (SPY) closed the latest regular session up 3.5% from the prior close. During the day SPY traversed 4.1% in a net move up of 0.8%.

The day's extremes: Open $127.63, high $129.42, low $124.32, close $128.63.

SPY closed above the DeMark pivots after trading within their range. The next DeMark pivots are $126.48-$131.58.

In total, 4.2 billion shares were traded on the three major U.S. stock exchanges, 31% more than on the prior trading day.

Implied volatility suggests a 68% chance that SPY will close, 30 days from now, between $119.18 and $138.08. The range is +/- $9.45 from the last closing price, $1.20 narrower than on the prior trading day.

Bond yields imply that inflation, over the next five years, will average 2.01%, 13 basis points higher than the prior trading day.

Econ reports

The Commerce Department releases the personal income and outlays report at 8:30 a.m. Eastern. These figures, among other things, can be used to derive the personal savings rate, a matter of great concern to everyone whose livelihood depends upon the selling goods and services. Which is to say, all of us.

Also out, the Labor Department's employment cost index at 8:30 a.m. -- wages, salaries, benefits -- and the Reuters and U. of Michigan's consumer sentiment index at 9:55 a.m.

No Fedsters are scheduled to make public speeches.

The Federal Reserve maintains an archive of selected 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 February or later straddles, strangles, calls and puts. And of course, shares are good at any time.

Good trading!

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