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During the day on Friday, we probably won’t get much in the way of headline announcements, so having said that we feel that the market will probably be fairly quiet. Will be interesting is to see whether or not the Euro can continue to strengthen, after what had been a very volatile trading session due to the monetary policy statement.
1 – At this point in time, we have to believe that the Euro will continue to strengthen overall, but will probably grind higher, not necessarily shoot straight up in the air. The Euro has been beat down from time to time recently, so perhaps this is just an overdue correction.
2 – Ultimately, we believe that the precious metals markets will continue to strengthen, and as a result we are only buyers of calls. Pullbacks at this point in time should continue to see call buyers enter the market, and with that being the case we are bullish of those markets and have absolutely no interest in buying puts in either the gold or silver markets at this point.
3 – The European indices are a bit mixed, but at this juncture we feel that there is enough support below most of them to offer call buying opportunities on signs of support. This will be especially interesting after the big move in the Euro, so having said that expect a lot of choppiness and you should probably stick to short-term charts.
