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During the day on Monday, there are a couple of announcements coming out that could move the markets. They are all PMI numbers, coming from Germany, France, and of course the United States. With this, we believe that the stock markets will more than likely offer quite a few trading opportunities.
The one scenario that we do see over the course of the session is that stock markets in general should be thought of as positive. We are buyers of calls on short-term pullbacks and have no interest in buying puts at all currently. We believe that the DAX, CAC, and US indices all offer nice trading opportunities to the upside.
Precious metals fell again during the Friday session after initially trying to take off to the upside. This shows that the continuing theme will be to buy puts every time these markets rally, as the gold and silver markets both are very soft at the moment. We believe that put buying opportunities show themselves on short-term charts, and as a result the markets should continue to be a favorite of traders.
Currency markets will continue to favor the US dollar, and as a result we are buyers of puts specifically in the EUR/USD pair, but also recognize that anytime you get an opportunity to trade in favor of the US dollar, you should as the market clearly favors the US dollar over currencies from around the world. Energy will also suffer, and as a result we think commodities in general are put buying opportunities as the US dollar works against any type of bullishness.
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