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Looking at the upcoming Thursday session, we have Retail Sales coming out of the United Kingdom, while the Unemployment Claims come out of the United States. With this, we believe that the markets will focus on stock markets in general, which makes the FTSE and the US indices very interesting to us.

Ultimately, we believe that the US stock markets will continue to go higher over the longer term, so we essentially are only buying calls at this point. With this, we believe that short-term call buying opportunities could present a bit of a “buy on the dips” type of market, as we see stocks in general going higher.

The precious metals market still looks like an excellent opportunity to buy puts every time they rally, as the gold and silver market simply cannot get out of their own way. They both look like the ready to break down through serious support, and perhaps go much, much lower.

We still believe that the US dollar in general will be the currency to own, so we are buying calls and puts favoring the US dollar in general. We would be very leery of favoring European currencies at this point, and by that we mean more than just the Euro. We believe the Swiss franc and the British pound both will be soft overall.