During the session on Thursday, we anticipate that a couple of different announcements will move the market. The first one of course is the German Manufacturing PMI numbers, which of course can have an influence on the DAX and the EUR/USD pair. Because of this, we expect a bit of volatility in both of these markets. In the United Kingdom the Retail Sales numbers come out for the month of September. Anticipated as being -0.1%, we believe that they will highly influenced the FTSE and the British pound in general.
Overall though, we think that the EUR/USD pair is one that you should be buying puts in, as the market is most certainly in a bearish pattern, and it looks ready to test the 1.25 handle. With that, we are buying puts every time this market rallies on the short-term charts, and most certainly would be buyers of puts below the 1.25 handle as it would signal a longer-term breakdown.
Silver markets look very suspicious at this moment in time, and it looks as if we will head back towards the $17.00 level. The candle for the session on Wednesday was very negative, and as a result we are buying puts every time this market rallies on short-term charts. Short-term options will be the way to go going forward, and as a result we will continue to go back and forth in this marketplace and profit every time the market it’s a bit overbought.
The Initial Jobless Claims number should move the S&P 500 as well, and we believe that the supportive yet neutral candle during the session on Wednesday suggests that buying the S&P 500 will more than likely be the way to go going forward. With that being the case, we feel that the market eventually heads to the 2000 level, and any pullback in this area here could attract buyers as supportive candles below would be a call buying opportunities.