On a day that features both Retail Sales out of Germany, and the CPI numbers out of the European Union, we feel that this market will probably be very interested in Europe itself. With this, we feel that most of the action will be in the European indices, as they showed slight weakness during the session on Friday, but it was a negligible at best. We believe the supportive candles could be used in order to start going long the DAX, the CAC, and other European indices.

Gold markets look like the ready to go little bit higher, which is a sign of possible US dollar weakness. (For the session at least. It) However, keep in mind that there are a lot of different reasons why gold might rise, and with that we think that short-term call buying opportunities could be in favor. As far as silver is concerned, we are staying away from that market as it is massively volatile and quite frankly we do not trust any rally at this point.

Ultimately, we do like US stock markets in general, so having said that we are not willing to buy calls at this point in time. We believe that the US stock markets will see a resurgence in bullishness. We also believe that the US dollar will eventually try to reach the 98 handle in the US Dollar Index. Because of this, we are looking for call buying opportunities on short-term pullbacks.

Print Friendly, PDF & Email

Related Posts