During the day on Wednesday, we get the ADP Nonfarm Payroll numbers coming out of America, which although not official, can move the markets just because they typically will give us an idea as to how the Friday numbers will come out. With this, it’s very likely that the stock markets will move and therefore we are going to look at potential levels when it comes to the S&P 500.
S&P 500
The S&P 500 does look like it’s ready to give up some of the gains initially, but at the end of the day we think there is a hard floor at the 2000 level. On top of that, we also believe that the 2020 level could be supportive as well so we are hoping to see fairly decent jobs numbers coming out of ADP, which could give us reason enough to start buying calls. If we get any type of bounce or supportive candle, we are more than willing to go long via calls.
USD/CAD
The USD/CAD pair fell slightly during the day on Tuesday, and it looks like we are going to grind our way down to the 1.30 level. Keep in mind that the oil number can affect not only the oil market, but the value the Canadian dollar as well. At this point though, it looks as if the technical signals are pointing to a lower move.
Natural gas soars
The natural gas markets were rocketed higher during the course of the day on Tuesday, but we still see quite a bit of bearish pressure overall. With this, we are waiting to see whether or not we get an exhaustive candle somewhere between here and the $2 level in order to serve buying puts again. Even though it’s been strong lately, we have no interest whatsoever in buying calls.
