Slow economic calendar
During the day on Thursday, there’s very little in the way of announcements to get the market moving in any drastic fashion, but the few that we do have come out of America. With fact, we feel that the market will be very tilted towards the United States, and therefore we look at most of our trades to be found in that general vicinity.
S&P 500 gaps
The S&P 500 gapped higher at the open on Wednesday, suggesting that perhaps we are going to go much higher. With that being the case, the market should continue to see buyers as we go towards the 1950 handle. We have no interest in buying puts at this point, we believe that the call buyers will continue to prevail at least in the short-term.
USD/CAD falls
The USD/CAD pair fell during the course of the day on Wednesday, breaking well below the 1.38 handle. That being the case, the market looks as if we should find quite a bit of support just below, especially near the 1.36 handle. We think that short-term put buyers will prevail, but the question then becomes whether or not we can continue to go below that level. Short-term put buying is probably about as good as it will get.
Silver markets rally
Silver markets rallied during the course of the day on Wednesday, using the $15.20 level as support. We believe that there is quite a bit of support all the way down to the $15 handle, so at this point in time we are only buying calls. However, we are not looking for some type of major move, just a slow gradual grind higher.
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