The markets in general won’t have much to focus on Monday, as there isn’t much in the way of announcements. That being the case, we could very well see a continuation of the overall longer-term trends.
1 – It appears that the precious metals markets are ready to pull back a little bit, but quite frankly we are more than willing to buy calls on signs of support below. We have no interest in going against the value of precious metals, because quite frankly it’s only a matter of time before the longer-term trends work themselves back out. After all, keep in mind that the Federal Reserve is cutting back on its interest-rate hike expectations, and that of course is negative for the US dollar.
2 – The Forex markets will continue to punish the US dollar going forward, but we may get a bit of volatility. Quite frankly with the Federal Reserve stepping away, it’s hard to imagine that the US dollar isn’t going to be favored at this point in time, and perhaps is a bit overvalued going forward.
3 – Stock markets will probably get a bit of a rise around the world going forward, simply because of the quantitative easing that we are seen everywhere. So far they have reacted positively to the Federal Reserve’s announcement, and of course we know that the ECB is looking to add to liquidity as well. This should cause a little bit of a move in the stock markets, but there eventually will come a reckoning to the fact that global markets are perhaps overvalued compared to global realities. We are far from that, though.
