Daily Market Analysis Video – December 21, 2015

The session on Monday will more than likely have very little in the way of economic announcements or headlines that can move the market, so having said that it’s difficult to imagine major volatility. Also, we’re getting close to the holidays, so having said that it’s very likely that the markets will be fairly steady. We are not looking for major moves today, but did see a couple of trends that could continue.

1 – The US dollar should continue to be one of the stronger currencies around the world, so we are trading in favor of it. We have no interest in going against the us dollar, and believe that even if we do pullback a little bit during the session, it will simply be a momentum building exercise in order to continue the longer-term trend. This is especially true against the commodity currencies around the world.

2 – Commodities continue to be put buying opportunities only; we have no interest in buying calls. There is simply not enough demand out there to justify higher energy prices for example, so we believe that both crude oil and natural gas will continue to soften.

3 – The stock markets look ready to pull back slightly, but given enough time we believe that the US stock market should outperform. All of them look like we are starting to drift lower, probably due to the holidays, as the liquidity drops and end-of-the-year profit capturing by hedge fund managers could be the case. Because of this, we will continue to look for supportive candles in stock markets around the world, but recognize that we may have a way to go.