The Week Ahead: Homes, and no crisis

This is a four-day trading week with little going on except for a pair of real-estate reports. Since the House Republicans say they plan to approve a three-month extension of the debt ceiling, there's not even a Washington political crisis to motivate traders.

Existing home sales, which encompass most of the housing market, will be released Tuesday, and new home sales, on Friday -- both at 10 a.m. Eastern. 

Housing is considered a major indicator for the blossoming of the post-recession economy like the first crocuses of early spring. So far, the economy has been barely hanging on like a sickly moss. So these two reports are worth a look for signs of a new hope or the dashing of hopes into a new despair.

U.S. markets are closed on Monday for Martin Luther King Jr. Day. Markets in London, Sydney and Tokyo will be open for business.

Leading indicators (in descending order of importance):

The interest rate spread between 10-year Treasuries and the federal funds rate, reported continually during market hours.

The M2 money supply, at 4:30 p.m. Thursday.

The S&P 500 index, reported continually during market hours.

Average weekly initial jobless claims, at 8:30 a.m. Thursday.

Other reports of interest:

Thursday: The preliminary purchasing managers index flash report just before 9 a.m., and petroleum inventories at 11 a.m.

Trading calendar

By my rules, as of Tuesday I'm using February options for the short legs of spreads and May options for single calls and puts and the long legs of spreads. Of course, shares are good at any time.

Good trading!