Looking at the upcoming Tuesday session, without a doubt the most important announcement will be the Reserve Bank of Australia’s interest-rate announcement. That being said, they are expected to providing interest-rate cut. More importantly will be the statement that accompanies the interest-rate announcement, which will give us an idea of what the Australians think about the global economy. If they say something that scares the markets, expect stocks to sell off.
Silver markets broke higher during the course of the session on Monday, breaking above the $16.50 level. With this, it appears that the market is trying to get to the $17.50 level, so we only buy calls. We look for short-term charts with little bits of pullback in order to take advantage of value. We have no interest in buying puts at this point in time.
Silver
Ultimately, the EUR/USD pair settled on a relatively calm session for the day on Monday, as we broke down below the bottom of the shooting star from Friday. However, the market basically banged around, and really didn’t take off to the downside very strongly. Because of this, we believe that the euro will continue to find buyers, and we look at a move to the 1.10 level below finding massive support being very likely at this point. However, if we did the exact opposite – breaking below the 1.10 level, we would be massive put buyers.
The S&P 500 initially rose higher during the course of the session, slamming into the recent highs. If we can break above the 2120 level, we feel that this market will take off to the upside. Pullbacks should continue to be call buying opportunities, as there should be plenty of support just below.