Daily Market Analysis – March 7, 2016

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The markets will be very quiet as far as headlines are concerned, as there are only a couple of minor announcements coming out of Japan. With that being the case, we anticipate a fairly quiet session during the day, and believe that some of the longer-term trend should continue to be the way to go going forward.

1 – Ultimately, looks as if precious metals will continue to go higher, so this point in time we believe that call buyers will continue to come back in this market going forward and it should push higher going forward. With no interest in buying puts, and believe that as long as there are concerns about financial conditions around the world, metals will do well.

2 – The energy markets are looking like they are getting a bit too rich at this point in time, and as a result we very well could see them roll over again. Ultimately, the oil markets look as if they are going to start rolling over again, so sooner or later we should see put buying resume.

3 – Currency should continue to favor the US dollar, as the jobs number was little bit stronger than anticipated. While they were necessarily gangbusters, the reality is that there are a lot of concerns when it comes to global markets, and that of course always puts a bit of a floor under the US dollar. Ultimately, the markets will be choppy but we still believe that buying positions in favor the US dollar will continue to pay off.