Daily Market Analysis – January 29, 2016

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During the day on Friday, we get several midgrade announcements coming out of Germany, Canada, the United States, and even Japan. With this, we could get quite a bit of volatility during the day but we think that the longer-term trends will eventually win as that is typically the case anyway.

1 – With this being said, we still like the US dollar overall and on the whole are buying positions favoring that currency. Nonetheless, this day looks like it could be a little bit of an outlier in the sense that perhaps the dollar bulls are taking a rest. This should be a very short-term move only, so at this point in time unless you are very nimble, you’re probably best served to simply sit on the sidelines and wait for signs to come in and start buying positions based on the us dollar again.

2 – Stock markets look like they are struggling a bit in the European Union, but we are getting terribly close to significant support. With this being the case, we think that waiting for a bounce might be the best way to play this market in order to start buying calls in the DAX, CAC, and other European indices.

3 – Precious metals and continue to look like an interesting trade, and with a pullback that we saw during the session on Thursday, we could find a bit of value in gold and silver. At this point, it does look like the trend is attempting to change to the upside finally.