Daily Market Analysis – 2/25/2016

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During the day on Thursday, it’s likely that the markets will go back and forth during the day as we have Core Durable Goods Orders coming out of the United States, Unemployment Claims, and Core CPI numbers. With this, it’s likely that the markets will offer plenty of trading opportunities.

1 – It looks as if the US dollar will take a bit of a break during the session, as several currencies are starting to work against the US dollar. Ultimately, this is a market that should continue to favor quite a bit of volatility, but it’s only a matter of time before that headlines come out to boost the strength of the US dollar. However, today we expect greenback weakness.

2 – Precious metals look like they are ready to continue going higher, and that could be part of a reaction to the US dollar falling during the day. However, it looks as if precious metals will continue to go higher over the longer term. After all, this is a market that should continue to have plenty to worry about, so with that it looks as if precious metal markets are going to continue to strengthen due to a bit of a safety play.

3 – Looks as if the energy markets will continue to be volatile, and we could get a bit of a dead cat bounce at the moment, but quite frankly the longer-term outlook for energy is soft. With that being the case, we could look for short-term call buying opportunities, but much prefer buying puts as if these markets should continue to struggle overall.