The Local's Take: Mid-Day Commentary

Good Morning,

As I mentioned, the line of death, holding for the weekend which gives me 3 days of time decay for all options sold.

Right to the chars. We will go with forex first as I just shut down my platform. A partial fill to end the week on a BUFFALO BOUNCE on the USD/CAD.

A nice way to finish the week - green every day. Let's hope next week provides the same intraday moves.

Next, a nice pattern on USO which has been trading in a nice range as commodities seem to be the most volatile in this very "unvolatile" equity market. 42 has been significant resistance.

The overall markets - as I said, 78.6% is the line of death and after 2 strong days, we were up a third (very similar to last Mon, Tue, Wed and then a selloff) but can't make it 4 days in a row at these elevated levels. Will we rally today? I don't think so but won't be shocked if we do!!!

Finally, for my good friend, we have AXP which has been moving. A breakout, selloff below the breakout line by about 3% (which probably exits a day and swing trader) and then a rally above.

This pattern basically sums up the markets - headfakes up and down, yet we end up in exactly the same place. I think individual stocks are harder than the overall markets. If you can find the ranges in the overall markets (SPY topping at 123) you are better off.

Play the ranges until we get a breakout to the upside or a sell rallies in very specific locations.

On another note - I will be teaching 2 upcoming classes at the U of U:
Intro to Personal Trading/Investing - covers stocks, options and forex
Fibonacci Course

Looking forward to my first backcountry ski tour of the year on Sunday. I figure it is part of my summer time training. By the way, if you want to get in shape for summer time, try the Computrainer classes at Team 19 in the Canyons Villages. If you compete and aren't ready, shame on you. If you focus on your ride, well done. I will be at the Wednesday night rides, which are almost sold out, so call if interested!

Have a great weekend and unemployment (unenjoyment) returns on Friday (along with both ISM numbers, claims and Bernanke)