University of Michigan Consumer Sentiment
During the session on Friday, we have University of Michigan Consumer Sentiment numbers, Core PPI numbers, and Retail Sales coming out of America. With that being the case, it’s very likely that the US dollar will come into focus, not to mention the fact that the currency effects almost every market out there, so there could be quite a bit in the way of trading opportunities today.
WTI Crude Oil continues to look soft
The WTI Could Oil market continues to look soft, and we believe that anytime the market rallies it is an opportunity to start buying puts. Given enough time, we believe that rallies will attract put buyers, as the real support for the market longer-term is closer to the $35 level. The $40 level above is massively resistive as far as we can see, so we are not interested in buying calls until we get well above there.
S&P 500 bounces
The S&P 500 rose during the course of the day on Thursday, as we had reached the bottom of the consolidation area. However, the market looks as it is ready to continue going higher, so we are buyers of calls as the market should then try to aim for the 2100 level which was the top of consolidation previously. We believe in the value of US stocks at the moment, and as a result have no interest in buying puts.
USD/CAD continues to look healthy
The USD/CAD pair initially fell during the course of the session on Thursday, but found enough support above the 1.35 level to turn things around and form a bit of a hammer. Because of this, the market looks as if it is ready to continue going higher, and on a break above the top of the range from the previous sessions this week, we are call buyers as the market should then reach towards the 1.38 level. We have no interest in buying puts at this point in time, as is market should continue to strengthen with a softening oil market.
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