The Local's Take: Mid Day Commentary

Good Morning Traders and Investors,

It is snowing outside - winter weather advisory for the bulk of the day with more snow in the forecast. I am not going to get too excited as we need more than 2 feet out of these storm systems
to cover provide a true powder day. Whatever you are doing, it is working, so keep doing it.

Maybe it is the "Sundance Effect". A double whammy, unprepared LAian's flood the stores for boots, scarves, hats, gloves. I will be busy entertaining family and friends during the next 2 weekends but hopefully I can sneak a day in on the mountain

Maybe the snow is caused by the continuing lack of volatility in the markets. Certain sectors are moving - see USO and its crude relationship trade:


Pretty nice swing trading if you can be patient as that downmove in middle of the chart ran a little more than most people suggested. Using that area as a support level could be the same as buying USO (crude) at a discount.

Our next trade comes from the education arena (ESI) - it has earnings coming up this week, but I am not sure of the impact of them as this is not a stock I follow. This is for an old friend, so be wary as you know the impact of earnings better than me. If you are thinking of the trade, it is discounted nicely compared to Friday so your risk to reward is even better.


Finally, we have our socially responsible stock of the day. If you have ridden the water WAVE over the past 9 months, you recovered nicely. Are their cracks appearing in the dike? Let's look at PHO:

After such a nice run, there is some resistance and could be time for an investment protection plan to be implemented.

Regarding Forex, not much is going on, but there is a possibilty for a double fall line trade on the GBP if we get another surge upwards:

The EUR is acting very weak to the USD so there could be a possibility of a brekout to the downside given a breakdown in the equity market later today:

If there are any more intraday moves, I will keep you posted. For all of you Locals out there, here is the link to my upcoming class at U of U Lifelong Learning. I will also be conducting a similar class for all of you #1 Deer Valley employees on Feb 15th - and it is free!

Keep praying for snow and Be Environmentally Cool with Locals Have More Fun Apparel.