Looking at the Monday session, there isn’t much in the way of economic announcements will push the markets that we tend to follow. The one outlier might be the Industrial Production numbers coming out of the United States, which could have an effect on US stock markets in general, as well as the US dollar possibly. Nonetheless, we feel that this market will probably be erratic overall as the liquidity will start to dwindle.
We feel that the EUR/USD pair will continue to offer put buying opportunities, and as a result that’s exactly what we are doing, buying puts. We want to see resistive candles after short-term rallies in order to take advantage of value in the US dollar, but ultimately feel that this pair will go all the way down to the 1.2050 handle.
The gold markets look as if they are ready to grind between the 1220 and 1240 levels, so therefore we think that shorter-term trading will be the only way to play the market over the next several sessions. With that, we are looking to offer short-term trades only.
We believe that the FTSE will more than likely try to find support near the 6100 level as London has taken far too much of a beating over the last several sessions. This is an area where buyers have stepped in previously, so would make a bit of sense if “market memory” came back into play. However, that rally will be a short-term call buying opportunity as ultimately we feel that the FTSE is probably going to continue to have serious pressure applied to it.
