Market Analysis & Trading Opportunities – September 22, 2015

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During the session on Tuesday, there’s almost nothing economic announcement related to move the markets. With this, we believe that we have to look to the technical setups in order to play this market.

1 – The US dollar appears to be strengthening, and as a result it’s only a matter time before most currencies fall and lose value against the greenback. Ultimately, we believe that the US dollar continues to strengthen mainly because of the Federal Reserve’s lack of confidence in the global economies. This will most certainly punish commodity currencies above all else.

2 – Precious metals will probably continue to find sellers, as the US dollar works against the value of them. However, keep in mind that the markets will remain volatile nonetheless, and as a result you should be fairly quick to take profits on puts.

3 – US stock markets will probably strengthen over time, but it is going to be very difficult in the short-term. Ultimately though, we think that the Federal Reserve keeping rates low will eventually push the stock markets in general much higher. With this, we are buyers of calls every time we pullback but we also recognize that the volatility will be fairly high, so we are willing to take profits rather quickly and do not want to hang onto the trade for any real length of time.