The Local's Take: Afternoon Commentary

Good Afternoon,
First off, I am not related to the Kahn who is making the headlines.
With that out of the way, we are getting dangerously close to a trendline on the SPY, so buyers beware or buyers jump in? With a relatively light data week, technicals will take over, so trendlines and chart patterns are of key importance.
Over the last few weeks, we have seen volatility creep up, so it is great timing that next week's webinar will be on average trading ranges.  Here is the link. And if the markets have you worried, then you better jump over to YouTube to see last week's all important webinar on inter-market hedging!
To the charts we go. Let's start with forex, with BUFFALO BOUNCES first and DOUBLE FALL LINES second:


And into the equity markets we go. Let me show you that trendline on the SPY:

Speaking of trendlines, will the long term trendline on Ford (F) hold? Let's look at chart of the socially responsible investment of the day:

Let's go from highs to lows and start with AXP - is it satisfying a 5th wave and maybe the target won't be taken out? Will there be a double top? If nothing else, a good place to buy protective puts and/or generate income with covered calls.

Now the lows and we will move into the commodity sector. First VALE and then SLW.  VALE may be looking good for some cash secured puts to pick up a stock at a 27% discount. Boy am I glad I sold some ITM calls when it was in the mid 30's. I think I made up the entire move down in 5 months of covered call selling.


With SLW, you can see the trendline has been broken. Will it act as new resistance?


Finally, to the really, really lows: RIMM. I think I should do a blog about how every single day my Blackberry malfuntions in a new, interesting way. Can you say: DROID?

Is there a bottom in sight here for RIMM? Is there a chance of support at this level? Would selling puts be a way to pick it up cheaply? I am liking the June 37.50's for 1.5 percent in 32 days. BUT, I would put stops in place (like all trades).
Happy Trading and Be Environmentally Cool
Coach Brian