One of the biggest problems that we are going to have for the trading session and many others after this one is the fact that the Federal Reserve has pretty much left the market confused yet again. It used to be in years past that the Federal Reserve was fairly decent about letting its intentions known. However, since it has stated in the last couple of years that it wants to become a “new transparent Federal Reserve”, it’s actually gotten worse. With this, expect a lot of volatility in a lot of short-term trading for the next couple of sessions.
The jobs number didn’t help anything, but we do believe that stock markets in general are going to continue to find buyers. With this, we do like buying equities, and as a result are call buyers in Europe and North America. Look at pullbacks as value, and be quick to take profits.
Precious metals to look soft, but they are supported below. With this, we are more apt to buy calls in the gold market off of bounces than silver, as silver has an industrial component that is far too confusing to factor into the trade at the moment.
Looking at currencies, we still believe that the US dollar in general will do fairly well, but we also recognize that the lack of clarity coming out of the Federal Reserve will temper any massive moves in the US dollar. If you do feel a need to place trades in favor of the US dollar, by all means look to favor the US dollar over commodity currencies, as that is the clearest trend that we see at the moment.
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