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The gold markets fell hard during the session on Tuesday, crashing through the $1210 level. Because of this, we feel that the buyers in this general vicinity might be interested in going long. However, we have to admit that the candle is extraordinarily bearish, so we would be hesitant to start buying calls in less we see signs of support. At this point in time, we only believe that it’s an area that you should pay attention to, not necessarily act on right away.
The S&P 500 continue to try to break out to the upside during the session on Tuesday, but struggled a bit. Nonetheless, we are without a doubt very bullish and strong in this market, and we feel that it’s only a matter of time before we reach even higher levels. Now that we are pulling back, we want to buy calls going forward as buying puts is completely out of the question in a market that is so strong.
Looking at the DAX, we can see that the Germans had a very strong session. Because of this, we feel that the market should continue to go much higher, perhaps heading to the €12,000 level next, and then higher than that, perhaps to the €12,400 level. We have no interest in buying puts, and believe that the Germans will continue to push their index much higher given enough time. We believe that the DAX will be one of the better performing indices in the European Union.
