Looking at the Monday session, there’s nothing on the economic calendar to move the market as far as we can see. With that, the market should be basically a technically driven affair. With that, we feel that the market will continue to see the same themes that we sold during the Friday session.
Speaking of that, the S&P 500 rose during the course of the day and tested the 2100 level. With that being the case, the market should continue to go higher. If we pullback, we believe that there will be plenty of support, and therefore we would be buyers of calls. We have no interest whatsoever in buying puts when it comes to the S&P 500 now.
The EUR/USD pair broke down during the session on Friday, testing the 1.06 level. With that, we feel that the market should continue to fall overall, and head to the 1.05 level. However, we would prefer to see short-term rallies that we can serve buying puts in in order to continue to take advantage of US dollar strength and of course Euro weakness.
The gold markets rose during the course of the session on Friday, but are still below the $1220 level. With that, the market looks as if it is trying to get there, but it is not until we get above that area that we feel the market has truly turned around. On a move above the $1220 level, we feel that the market should then head to the $1300 level. Until then, we are on the sidelines.
