Market Analysis & Trading Opportunities – October 30, 2015

During the session on Friday, there is very little to move the markets, with perhaps the exception of the University of Michigan Consumer Sentiment numbers, and the Unemployment Rate coming out of the European Union. Looking at this market, we believe that it will be a fairly “steady” type of session, as there isn’t much that should shock the market.

1 – That being said, it looks like the precious metals will continue to drop during the session. We are longer-term bullish of this marketplace, but ultimately we believe that we may need to see a bit more of a pullback before we find enough value for the buyers to come back in. We buy short-term puts in the gold and silver market based upon this theory.

2 – Overall, the US dollar should strengthen, as this will not only work against the value of commodities such as gold and silver, but against commodity currencies as well. Because of this, we feel that the Canadian dollar, and the Australian dollar should struggle.

3 – Stock markets in general should continue to go higher, but we look at those as longer-term trades. We believe in buying calls, especially in the United States as the Federal Reserve continues to look unlikely to tighten monetary policy soon. This is normally good for stocks in general, and we believe that will be the way going forward in the United States.