Wednesday, December 7, 2011

12/8 Almanac

On Thursday, Dec. 8: Weekly jobless claims.

There are nine days before the December options expire, 44 the January, 72 the February and 100 the March.

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


Blue chip stocks (SPY) closed the latest regular session up 0.4% from the prior close. During the day SPY traversed 1.8% in a net move up of 0.7%.

The day's extremes: Open $125.84, high $127.26, low $124.97, close $126.73.

SPY closed within the DeMark pivots after trading below their range. The next DeMark pivots are $125.85-$128.14.

In total, 2.4 billion shares were traded on the three major U.S. stock exchanges, up 6% from the prior trading day.

Implied volatility suggests a 68% chance that SPY will close, 30 days from now, between $116.23 and $137.23. The range is +/- $10.50 from the last closing price, 40¢ wider than on the prior trading day.

Bond yields imply that inflation, over the next five years, will average 1.82%, four basis points lower than on the prior trading day.

Econ reports

The Labor Department releases weekly jobless claims stats at 8:30 a.m. Eastern. It's the one report of the day that is likely to motivate traders.

Also out, Bloomberg's consumer comfor index at 9:45 a.m., wholesale tarde at 10 a.m., natural gas at 10:30 a.m., and the weekly whiz-bang from the Fed: The balance sheet and money supply, both at 4:30 p.m.

Treasury announces requirements for 3- and 6-month and 52-week bills; 3-, 5- and 10-year notes; and 30-year bonds at 11 a.m.

No Fedsters are scheduled to speak. For people interested in oldies but goodies, 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 January vertical and calendar spreads and March or later straddles, strangles, calls and puts. And of course, shares are good at any time.

Good trading!

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