Thursday sees the US release its Initial Jobless Claims, as well as its Core Retail Sales numbers. That should move the US stock markets in general, as well as the US dollar and as a result we are paying the most attention to the Dollar and the US stock markets in general. That being the case, we believe that pullbacks that we are seeing in the S&P 500 are call buying opportunities going forward. That being the case, the market should then head to the 2100 level, and then possibly higher than that.
The gold market failed to impress during the session as well, as the 1240 level offered enough resistance to turn things back around and form a shooting star. That being the case, the market looks as if it is ready to pull back and the US dollar should strengthen in general. That of course will drive down the price of gold, and should send this market looking for the 1140 level.
We believe that the EUR/USD pair will continue to fall, even though we a positive session on Wednesday. The 1.25 level above looms large, and should be massively resistive. With that being the case, we believe that this market continues to offer put buying opportunities as the US dollar is by far the strongest currency out there. On top of that, the Euro continues to struggle in general, so therefore this is a one-way trade in our opinion.
Ultimately, we believe that the United States is where your money should be. We believe that any pullback in value as far as anything related the United States should continue to be opportunities to pick up assets cheaply. With that being the case, we are positive the US indices, as well as the US currency.
