During the Wednesday session, the silver market broke out and above the $18 level, but as you can see pullback a bit in order to form a little bit of a shooting star. It doesn’t matter though, we believe that this market will find buyers and continue to grind higher. Therefore we are only buying calls on supportive candles in their by forgetting about puts even though we could get a bit of a pullback now.
In the EUR/USD pair, we tried to rally, but failed and ended up forming yet another shooting star. Because of this, the market looks as if it is going to eventually break down below the 1.15 handle, and therefore we are buyers of puts every time this market rallies on the short-term chart. For us, the bearish pressure in this market is overwhelming, and should continue to drive the value of the Euro lower.
Looking at the FTSE, we broke above the 6650 handle, which of course was a bit of resistance. Because of this, the market looks as if it should continue to go higher and aim for the 6750 level. Ultimately, we believe that the market will break above the 6750 level as well, so every time we pullback in the short-term chart we are willing to buy calls as the market looks very healthy.
The S&P 500 broke out a little bit to the upside, and we believe now is heading to the 2060 handle as long as we can break above the highs from the Tuesday session. Ultimately, we cannot buy puts and we believe that the S&P 500 is a market that you can only buy calls in.