Friday, January 13, 2012

The Week Ahead: Prices

Next week is a short one for U.S.  because of Monday's holiday in honor of Dr. Martin Luther King.

In the U.S., both stock and bond markets will be closed, along with exchanges for futures and options. However, markets will be open as usual in London, Tokyo and Sydney. So American traders will need to pay attention to the currency markets on Monday.

During the truncated week, the U.S. will have a full platter of significant economic reports  to motivate the market.

The theme of the week is prices -- inflation if they rise, deflation if they fall, stagflation (?) if they fail to go anywhere at all.

Producer prices will be released Wednesday at 8:30 a.m. Eastern, followed by consumer prices on Thursday, same time.

Also out,

Tuesday, The Empire State manufacturing survey, for New York, at 10:30 a.m.

Wednesday, Treasury international capital at 9 a.m. , industrial production at 9:15 a.m. and the housing market index at 10 a.m.

Thursday, Housing starts and weekly jobless claims at 8:30 a.m., the Philadelphia Fed survey covering the mid-Atlantic region at 10 a.m.,  and natural gas and petroleum inventories at 10:30 a.m. and 11 a.m. respectively.

Friday, Existing home sales at 10 a.m.

Practical trading: By my rules, as of Tuesday I can trade February vertical, calendar, diagonal and butterfly spreads, iron condors and covered calls, and April singles and straddles. Of course, shares are good at any time.

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