Looking at the session on Friday, there isn’t much in the way of economic announcements to move the markets outside of Canada and Australia. With that being the case, the market looks as if it’s probably going to be more or less technically driven, so having said that we have to look at the charts in order to place our trades.
The EUR/USD pair fell during the course of the session on Thursday, as we took back all of the gains from Wednesday. That knee-jerk reaction ended up being short-lived, and as a result we believe that there are put buying opportunities going forward as the market should break down below the 1.05 level, and then possibly the parity level. We have absolutely no interest in buying calls at this point.
The gold markets went back and forth during the course of the session on Thursday as well, bouncing between the 1160 and the 1180 levels. Ultimately, we believe that the market is trying to put a bit of a base in, but we are not ready to start buying quite yet. We are looking for supportive candles on the daily timeframe in order to start going long via calls.
The S&P 500 fell a little bit during the session on Thursday, as the 2100 level offered enough resistance based upon the row number in order to push the market lower. With that being the case, the market should try to find support below, and as soon as we see it we are ready to start buying calls. We have no interest in buying puts, because we believe that the long-term uptrend still remains intact as the markets continues to look fairly strong from a longer-term perspective.