Looking at the Wednesday session, without a doubt the most important announcement that we see is the US Retail Sales Number. We believe this will have a significant influence on the S&P 500, so we will of course be watching that particular index, as well as the US dollar.
The EUR/USD pair broke higher during the course of the session on Tuesday, as we are now back above the 1.12 handle. Because of this, we believe that the pair is going to continue going higher, and should eventually try to work its way towards the 1.15 level. We recognize that pullbacks will be call buying opportunities, and that there is massive support below. With that, we remain bullish.
The WTI Crude Oil markets higher during the course of the session on Tuesday, jumping back over the $60 level. With that, we believe that the oil markets will start to heat up again, and that buying calls will be the only thing you can do. We believe that there is plenty of bullish pressure underneath, and remain bullish long-term. We do not anticipate some type of massive breakout that shoots straight to the sky, but rather a grind towards the $70 handle.
WTI Crude Oil
Looking at the S&P 500, you can see that we initially fell during the course of the day on Tuesday, but found enough support to turn things back around and form a hammer. With that, it’s only a matter of time before we break out to the upside, and therefore we continue to buy calls on short-term pullbacks. We have no interest in buying puts; the index continues to show significant support.