The Local's Take: Mid-Day Update

A groggy good morning!

After a great night on Main Street with the bands Location Location and The Bravery,
it is nice to see a down day in the equity markets as I feel commodities have had quite a run and therefore sold some ATM covered calls in that sector.

Back to Main Street, thanks to the Sidecar and the Downstairs (and the superb bartending) for an excellent night. Some personal friends are in for skiing, Sundance and Outdoor Retailer so we will be seeing a lot of you in the next few weeks. I will be the designated driver for the bulk of the evenings, so if anyone needs a ride, please shout!!!

Back to the markets!! Not much is going on aside from the bullish equity markets and today's selloff. REMEMBER, MOST of the time, there is a second chance to get in. You have heard of double tops, failures, etc... Just because the Dow goes down and (possibly stays down???) near its lows of the day and then carries through???? a second or third day in a row does NOT mean the trend up has ended. We would need a downmove and then a SMALLER upmove and THEN the bigger selloff. SEQUENCE and FAILURE get you to understand TARGETS and therefore have a TRADING PLAN!!!!

As far as charts go, I am not going to post too many. The Dollar versus the CDN is very, very weak but oil is lower. A few relationships we relied on are breaking down here and there, but for the most part, the song remains the same: weak equities, stronger dollar, weaker oil due to less supply.

Now for the socially responsible tip of the day: Locals were given a big thank you last evening by Ski Utah President, Nathan Rafferty. So share your pride with Locals Have More Fun apparel.

Let's relate this to a "local" stock: Whole Foods as they suppport local farmers/initiatives:


Using the $25.00 mark as support, you can sell naked puts to create income and then gain the stock at a discount if it drops below. BUT, once it drops below $25.00 it broke support, do you want to own a stock when it has proven to be weak. Either way, you have a TRADING PLAN and you DEVELOPED risk to reward.

Be sure to catch the Deer Valley Freestyle World Cup on TV: the competitions will air on NBC Saturday, January 23 at 1:30 p.m. EST and on Versus Sunday, January 24, at 5 p.m. EST and Sunday, January 31 at 4 and 5 p.m. EST.

If there are any major forex moves in the next 2 hours, I will be sure to update you.
Have a great weekend and Be Environmentally Cool