Daily Market Analysis – 2/10/2016

Video length: 00:01:39

Today, we have several mid-level announcements coming out of the European Union as far as Industrial Production is concerned, but not really enough to move the markets drastically. We believe that ultimately the markets will continue to follow the momentum that we’ve seen for some time, so it makes trading somewhat simpler going forward.

1 – We believe that stock markets around the world are going to continue to struggle, and as a result we like the idea of buying puts on short-term rallies that fail. We think those will happen again and again, and it’s only a matter of time before the market falls lower. We have no interest in buying calls at this point and would have to wait for a longer-term signal.

2 – We are still very suspicious about commodity currencies, such as the New Zealand dollar, the Australian dollar, the South African rand, and the Canadian dollar. In general, commodities are going to continue to struggle overall, as this is a very low growth environment that we find ourselves in. This is a market that is struggling with any type of growth, so commodities of course will be of low demand.

3 – That being said, we are looking to buy puts in most commodities, with perhaps the exception of precious metals. Those are acting a bit different because of the fact that a lot of currency is suddenly weakening as central banks around the world look very likely to continue with either low interest rates, or extraordinarily low ones. Nobody’s looking to raise rates in the short-term.