There should be little economic news for the session today, but this isn’t to say that there aren’t a few positions to be had. After all, there are a lot of sellers out there still in the EUR/USD currency pair. In other words, very time this pair bounces, we will be looking for a resistive candle in order to sell. The Euro’s problems remain, and as a result we still feel that the market will continue to push the EUR going forward. We are especially interested in selling near the 1.25 level.
The gold markets got a nice jump on Friday. However, we can clearly see significant resistance in the $1200 region, so we are waiting to see if the sellers come back into the market there. If they do – we will be buying puts hand over fist. The gold markets are broken, and this isn’t going to change anytime soon in our opinion. With this, the US dollar will continue to work against the value of gold, as well as silver for that matter. We like the greenback going forward overall.
Looking forward, we believe that the US dollar is going to continue to be King for a while. The S&P 500 won’t be hurt however, and neither will the other US indices. This is because we feel it is a US-positive type of market now. In short, buy America and short everything else.