1 – The S&P 500 looks as if it is trying to break out on Friday, and as a result we believe that this is essentially a market that you can only continue to buy calls in, and that we will eventually go much higher. We have not only fire off several short-term call buying signal, but several long-term call buying signals as well. We have no interest in buying puts, and believe that every time we pullback is just simply the market offering value.
2 – Gold markets dropped a bit during the session on Friday, testing the $1210 level for support. It did in fact find it there, and the market bounced in order to form a hammer like candle. Because of this, we believe that the market continues to offer call buying opportunities, and have no interest whatsoever in buying puts as gold should break out and head towards the $1300 level given enough time.
3 – The DAX tried to rally during the session on Friday, but fell flat just about the €11,600 level. Because of this we ended up forming a shooting star of sorts, but at the end of the day we feel that this market will eventually break out to the upside so we are buying calls on short-term pullbacks and show signs of support. We also buy calls on a break above the top of the range for the session and we believe the DAX is heading towards the €12,000 level.
