Market Analysis & Trading Opportunities – October 21st

During the session on Wednesday, the only announcement that we have coming out will be the crude Oil Inventories number, which of course can move the WTI Crude Oil market in the United States, and an interest-rate announcement coming out of the Bank of Canada. Ultimately, this is a market that will probably continue what we have seen for the last several days.

Ultimately, the oil markets look as if they are ready go higher, so we feel that will continue to be the way going forward, and with that we continue to be very positive of the oil markets. Any pullback at this point in time should offer value.

The US dollar will continue to be mixed against most currencies, and as a result you will have to trade the currency against specific currencies and different directions. We believe that the commodity currencies may struggle a bit, but given enough time you should find plenty of opportunities to work against certain currencies such as the Kiwi dollar, Australian dollar, and Canadian dollar.

Stock markets in America continue to look very strong, so as a general rule we are buyers of calls in the NASDAQ 100 (QQQ), S&P 500 (SPY), and of course the Dow Jones 30 (DIA). Although the European indices all look strong as well, we still prefer to buy the American ones at this point in time. Regardless, we have no interest whatsoever in buying puts against stock indices at this point.