Wednesday features one economic announcement worth paying attention to, the ADP Employment Change numbers out of the United States. While this is not the official employment number, it does give us a bit of a preview as to how the numbers may go on Friday. With that being the case, we feel that the market will more than likely be very volatile during that announcement, and as a result the stock markets in the United States can get pushed around.
The Dow Jones 30 pull back slightly on Monday, and we believe that Tuesday and Wednesday both will feature bit of consolidation. However, on any type of supportive candle we are willing to buy calls as we believe the longer-term uptrend will continue. Ultimately, the marketplace should continue to offer call buying opportunities on short-term pullbacks.
The silver markets fell on Tuesday, but found enough support at the 16.50 level to turn things back around and form a hammer. That hammer of course is a very bullish sign, and that house us believing that the market will probably head back to the 17.50 level, but we do recognize it is going to be very volatile. Because of this, you are going to have to be fairly headstrong to hang onto this trade.
silver
The EUR/USD pair continues to fall, and we are now below the 1.08 handle again. Because of this, we believe that the market will more than likely find selling pressure again and again, and we are sellers of short-term rallies as we believe they offer value in the US dollar.