The Local's Take: Afternoon Commentary

Good Afternoon,
So in 7 trading days, we have done 5% in the DIA. I took a snapshot of the SPY, so you can see the upmove. Ben and the Fed did their thing and I will talk about it in depth in tonight's webinar.
We still get some employment data tomorrow with claims, but again, do they matter at this point. I think you have to look at the economic calendar "from a distance" as it may not matter until we hit 13000 in the DOW or we get further down the road with a few more quarters of data. So, as I said on Monday, buy and stay long equities and stay short the dollar and hedge very, very carefully in very, very select locations.
Other topics on tonight's webinar:
**moving averages!! - what a great time to use them
**your account size and your trade size
**fundamental (ha!) news and technical analysis
**and of course, inter-market relationships
So here is that chart of the SPY - notice the past 7 days:

Moving into the renewable energy sector, we have VLO, Valero and a recent update:
Valero Energy is using wind energy to power a refinery in Texas.  The $150 million clean energy project will use 33 wind turbines to provide up to half  of the energy needed. Did you know that energy PRODUCTION is the most water intensive of any uses for water out there? Agriculture is second. So every time you drive, you are using water and or course that other commodity, oil!

This is a great stock with a perfect price range for people starting out with options as the stock volume is immense and the option inerest is great, providing low spreads.
Moving to another producer, Whiting Petroleum, WLL:

Why do I have this up here? Because it has had a massive run and it looks like Whole Foods (WFMI) which I had on the blog the past few days. WFMI is double topping and I talked about generating income with covered calls. Can you do the same with WLL if you have it in your portfolio? By the way, the May 75's are giving 1.50 which is 2% in 23 days. Here is a chart of WFMI as a reference:

Before we move to forex, and this actually looks like a forex chart as it is trending and breaking out, trending and breaking out, we have the retail sector: RTH. Go to the mall, go to a bar, a restaurant and you will see people shopping, dining and drinking. The economy is robust:

Moving to forex, the BUFFALO BOUNCES didn't work today, but that is OK - a small price to pay for a massive run up in the equity portfolio:

Thank you Ben for giving me more fodder for tonight's moving average talk on the Interbank FX webinar.
Happy Trading and Be Environmentally Cool
Coach Brian