During the session on Monday, we get a handful of mid-level Japanese Industrial Production type numbers, so really this point in time there is little to move the markets as far as economic numbers are concerned.
1 – Because of this, we are looking for a continuation of the overall trend, so that means softness in the Canadian dollar while we see quite a bit of strength in the US dollar against not only it’s, but other commodity currencies in general.
2 – Speaking of commodities, the commodities are falling apart overall. Especially energy, as there seems to be a significant amount of supply out there to deal with any type of demand. With that being the case, the market should continue to buy puts every time the energy markets try to rally, and that seems to be the way going forward for quite some time.
3 – Stock markets continue to look soft as well, and as a general rule we are buying puts on short-term rallies as the world still is very concerned about various economic issues, and of course problems with demand. Because of this, we are put buyers on rallies and will continue to be sold going forward as there seems to be no end to the bearishness going forward. We are aware of the fact that there will almost have to be some type of relief rally, but at that point in time we feel it will only offer nice put buying opportunities.
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