Thursday, October 6, 2011

10/7 Almanac

On Friday, Oct. 7: Employment and unemployment.

There are 15 trading days before the October options expire, 43 the November, 71 the December and 106 the January.

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


Blue chip stocks (SPY) closed the latest regular session up 1.8% from the prior close. During the day SPY traversed 2.8% in a net move up of 1.9%.

The day's extremes: Open $114.36, high $116.66, low $113.51, close $116.49.

SPY closed above the DeMark pivots after trading within their range. The next DeMark pivots are $115.00-$118.15.

In total, 3.3 billion shares were traded on the three major U.S. stock exchanges, 11% fewer than on the prior trading day.

Implied volatility suggests a 68% chance that SPY will close, 30 days from now, between $104.38 and $128.60. The range is +/- $12.11 from the last closing price, $0.28 narrower than on the prior trading day.

Bond yields imply that inflation, over the next five years, will average 1.67%, nine basis points higher than the prior trading day.

Econ reports:

The employment situation report -- jobs created, unemployment rate, everything you ever wanted to know about the subject -- will be released at 8:30 a.m. Eastern.

Also out, wholesale trade at 10 a.m. and consumer credit at 3 p.m.

Atlanta Fed Pres. Dennis Lockhart takes part in a town hall meeting. An alternate member of monetary committee, Lockhart took office under President George W. Bush. His resume shows institutional ties to Citigroup (then called Citicorp/Citibank), Heller Financial and the private equity firm Zephyr Management L.P.

The Federal Reserve maintains an archive of speeches and testimony.

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.

Good trading!

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