Looking at the upcoming Friday session, the market has almost nothing to pay attention to as far as economic announcements are concerned. With this, it should be a very technically driven day, and therefore we are essentially just paying attention to the technical analysis.
The EUR/USD pair continues to struggle every time it gets above the 1.14 level, so we are buyers of puts every time we rally on a short-term chart. We believe that ultimately this pair will finally break down and head towards the 1.11 handle, so we remain bearish overall.
Looking at the WTI Crude Oil markets, we fell slightly during the session on Thursday. With that, the market looks as if it is ready to continue consolidating between the $54 level on the top, and the $48 level on the bottom. With that, we actually prefer buying puts every time this market rallies on short-term chart, as we expect choppy but negative action.
The S&P 500 try to rally during the session on Thursday, but struggled again at the 2100 level. That is an area that continues offer massive resistance, so if we can get above there we think that buying calls for the longer term will be the way to go. We think that the 2060 level below is massively supportive, so quite frankly pullbacks to that area should offer call buying opportunities as well. We have no interest in buying puts.