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During the session on Tuesday, we only have a few mid-level type of announcements coming out of the United States, so we believe that while there could be a little bit of volatility in the stock markets, beyond that most of the order flow during the day is going to be technically driven, meaning that we can take a look at some of the prevailing trends and assume that continuation should be the way going forward.
1 – We believe the stock markets are trying to hang onto gains from the last week, but we could very well see quite a bit of sideways action in the short-term. We believe that there is more of a call buying bias to the market right now, but again would be very quick to take profits.
2 – The US dollar continues to be the strongest currency in the world overall, and should continue to be on the longer-term charts. Having said that, we could get a little bit of a reprieve for other currencies during the course of the week, but do not expect anything major.
3 – Energy markets are still decidedly bearish of the longer-term, regardless of whether or not they continue to rally. At this point, we are looking to buy puts on signs of exhaustion in both the natural gas and WTI Crude Oil market, and as well as the Brent market.
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