Daily Market Analysis – March 2, 2016

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The markets during the session on Wednesday will be paying quite a bit attention to the jobs situation in America, as we get the ADP numbers. This isn’t the official number, but it does typically give us an idea as to how Friday should turn out. With that being the case, we would anticipate seeing quite a bit of action in the US stock markets. Because of this, we believe that the day may actually be skewed towards the back half and was there isn’t much to move European markets at the moment.

1 – At the moment, it appears that US indices are trying to rally. We believe that will more than likely be the case going forward, as there seems to be a certain amount of resilience in the US markets overall. With that being the case, we are buyers of calls in all US indices because of the inherent strength.

2 – It’s very likely the precious metals will continue to do fairly well, as there are a lot of concerns around the world about economic growth and of course currency wars. With that being the case, that should continue to be a market that call buyers will be interested in.

3 – Overall, we are bearish of energy, and believe that the recent strength seen in the energy market will reverse itself and eventually fall. We believe that this is a bit of a fool’s rally, so we are simply waiting for signs of exhaustion to start buying puts yet again in the petroleum markets.