Continued volatility?
Looking at the Thursday session, there are a couple of announcements coming out of the United States, specifically Unemployment Claims, and as well we have the Preliminary GDP numbers coming out of the United States. With that, we expect a little bit of volatility out of America, but quite frankly most of the volatility will be from all of the wealth distraction that we have seen over the last several days.
USD/JPY offering a hard level
Without a doubt, we believe that the 120 level in the USD/JPY pair is resistance, but if we can get above there to be a nice call buying opportunity as the market could go as high as 124 after that. In the meantime, we are going to ignore the buying opportunities, simply because there is so much in the way of support below at the 118 level.
Gold markets testing support
Gold markets as you can see fell all the way down to the $1120 level, an area that begins a significant amount of noise only down to the $1110 level. Ultimately, a supportive candle in this area would be a call buying opportunity going forward, ultimately we believe that the market will probably bounce. Ultimately, we think that the market will continue to show quite a bit of volatility and with that short-term trades will be the only thing were looking for.
NASDAQ fails to hang onto gains
The NASDAQ rally during the course of the session on Wednesday, but as you can see the 4200 level above continues offer resistance. With this, we are actually buyers of calls above that level, and then buyers of short-term puts every time we fail. We do not plan on buying puts for any type of long-term trade though, because obviously the 4000 large, round, psychologically significant number below will attract attention.
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