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During the day on Thursday, we get a plethora of announcements coming out of various parts of the world. The most important one will of course be the unemployment numbers coming out of the United Kingdom, and any accompanying statement. Ultimately though, we believe that the market is very technically driven at this point, and should continue to be.

1 – We believe that energy will roll over eventually, but it may take a minute to get the move. We are looking to buy puts every time we get an opportunity, especially upon exhaustion. Ultimately, it’s likely that the quantitative easing around the world signals that economic conditions do not support higher energy prices. Given enough time we would not hesitate to start betting against them.

2 – European indices look very quiet at the moment, as we are simply sitting still. With that being the case we are staying out of the stock market as far as Europe is concerned, but we do recognize that a lot of them look like they are trying to build up enough momentum to break out. Once we get an impulsive green candle in any of these indices, we start buying calls.

3 – Precious metals look as if they are trying to build up a little bit of momentum at the moment, so we are waiting to see some type of supportive or impulsive candle in order to start buying both gold and silver. We will buy calls on that move, and have no interest whatsoever in buying puts because of the resilient support that we see just below on both of those charts.