During the session on Tuesday, it’s very likely that we will continue to see some of the themes that we have been seeing over the last several weeks. We believe that the EUR/USD pair will more than likely run into a bit of resistance above, especially as we approach the potential bearish flag that has just broken to the downside. That being the case, the market looks as if it’s going to offer put buying opportunities on resistive candles as we should eventually march back down to the 1.25 handle.
Gold looks a bit stale at the moment, with the $1220 level being a significant level to both offer support and call buying opportunities, or perhaps a break down below that level being a nice put buying opportunity as the market could continue the downtrend. Right now, we feel as if the gold markets are in a state of reflection, as the futures markets are reporting that bullish gold be running at extraordinarily high levels. With this, we will have to pay attention to this marketplace and wait to see what it wants to do next.
The S&P 500 as you can tell continues to show strength even though we fell a bit initially during the session on Monday. The Core Durable Goods Orders numbers coming out today could push the market higher at this point, thereby having is buying calls. We have absolutely no interest in buying puts because of the massively bullish move that we’ve seen recently, showing real strength in US equities overall.
In the stock market, we preferred the stock Apple at the moment as the $104 level been broken above offers a significant bullish sign. We believe that all of the gaps and the breakout signal that Apple is going to go much higher, as it has now settled down after the announcement jitters that almost always accompany this particular stock. We believe that buying dips via calls will be the way to go going forward.