(Video length 00:01:49)
During the session on Wednesday, we have quite a few economic announcements that can move the marketplace. The Distro Production number out of China will have a decent influence on global risk appetite, and therefore if it is better than expected it could be positive for all stock markets that we follow.
1 – European indices look like they are ready to bounce and continue going higher, so in general we are call buyers anyway. If that Chinese number helps us, we could continue to go much higher. With this, we have no interest in buying puts, and believe that stock indices in general should be positive going forward.
2 – The US dollar has strengthened recently, and we think longer-term it will. However, we could get a little bit of a pullback in the value of the US dollar as nothing moves in one direction forever. Ultimately though, the US dollar does continue to strengthen as the Federal Reserve is much quicker to raise interest rates than almost all other central banks around the world. That of course is the underlying momentum for currencies in general, and as a result we are bullish of the US dollar in general.
3 – Ultimately, we do believe that the market continues to show volatility and should be traded from the short-term charts, thereby having people using small moves to profit from this market.
Leave A Comment