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During the session on Wednesday, we have several different economic announcements they can move the marketplace. We have German Unemployment figures, GDP numbers coming out of the United Kingdom, the ADP numbers coming out of the United States, and then of course the Crude Oil Inventories announcement coming out of America as well.
1 – With this, we feel that the WTI Crude Oil market will continue to be volatile, but we see an obvious support level at the $44 level. We think that eventually this market will continue to go much higher, but ultimately you will have to have a lot of wherewithal to follow this trade.
2 – All things being equal, we feel that the European indices could probably bounce during the session, but it may just be a short-term opportunity. We believe that they are oversold at this point, and that it’s only a matter of time before the buyers come back to get involved.
3 – Currency market should still favor the US dollar in general, and that will be especially true against commodity currencies such as the Canadian dollar, Australian dollar, and New Zealand dollar. Look for opportunities to pick up the US dollar on “value”, as weakness will more than likely be temporary at best. Ultimately, the markets are far too shaky for commodity currencies to do well over the longer term, as they are far too dependent on the price of futures contracts to feel comfortable owning them for any real length of time.
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