The EUR/USD pair fell from the 1.14 level during the session on Wednesday as the Euro continues to struggle to keep any gains. That being the case, we are still buying puts in this market as the US dollar continues to be one of the favored currencies around the world. With that, we believe that the Euro continues to fall and needs to go down to the 1.10 level given enough time.
Silver markets broke a little bit higher during the course of the session on Wednesday, after forming a nice-looking hammer on Tuesday. We found the $17.50 level below to be massively supportive, and therefore formed a hammer. Now we continue the up move and we are buyers of calls going forward as precious metals in general look fairly healthy, and although the US dollar is strengthening overall, this seems to be more or less a run from other currencies not the dollar.
The S&P 500 fell rather drastically during the course of the session on Wednesday. However, we still remain within the consolidation area that we have been in for some time, and as a result we look at supportive calls after pullbacks in the market that show bits of buying below. Ultimately, the market should continue to be positive in the longer term, and we do believe that the S&P 500 will ultimately go to the 2100 level. That being the case, we believe that to be the case with most of the US indices in general, and therefore are only looking for calls in the United States.