Looking at the session for Tuesday, the RBA releases its meeting minutes to the world. While we do not anticipate seeing the markets move much from that particular announcement, there is the possibility that the market will react to concerns out of Australia about the global economy. Because of this, we don’t necessarily have a trade that we are going to place based upon that announcement.
Looking at the S&P 500, we initially fell during the session on Monday but then turned back around to go higher. Now that we have done that, we have made a fresh, new high. As a result, we believe that the market should then continue to go higher so therefore on short-term pullbacks we are buyers of calls. We have no interest whatsoever in buying puts as there are plenty of buyers in this market.
The silver markets rose during the session on Monday, as it looks like we are heading towards the 18.50 level. With that, we are bullish and we are buying calls on pullbacks. We have no interest in buying puts, because the silver markets look so strong.
The GBP/USD pair broke down a little bit during the session on Monday, but we think there is more than enough support below in order to go into the market is serve buying calls. We believe that the market will have to back up to build up enough momentum to finally break above the 1.58 level, but we feel it’s only a matter of time.