Looking at the upcoming Friday session, we cannot help but think that the German GDP numbers will be by far the most important thing to follow. Because of this, it’s very likely that the DAX will move significantly, especially considering how little it did during the day on Thursday. With the neutral candle that form, it appears that a move above the €9300 level will in fact be a signal to start buying, probably heading towards the €9500 level.
In the EUR/USD pair continues to struggle to get above the 1.25 handle, so it’s very likely that we will continue to see buyers come back into the market and push the Euro down every time we reach that region. The market looks as if it’s ready to continue going much lower over the longer term as well, and we still believe that the market could go as low as 1.2050 given enough time.
The S&P 500 struggled during the day on Thursday, but the shooting star that had formed only suggests to us that it’s a matter of time before we get the pullback that’s needed in order to take advantage of perceived value and serve buying calls. We still believe that the S&P 500 goes as high as 2100 and the short-term. We have no interest whatsoever in buying puts, and believe that the market will eventually continue much higher than that.
The precious metals will continue to offer put buying opportunities every time they rally, simply because the United States dollar is so strong and the demand for both silver and gold is simply falling off of a cliff. We could not be any more bearish of these two particular markets, and have no interest in buying calls whatsoever.