Daily Market Analysis – February 29, 2016

The general outlook for the market should be fairly quiet on Monday, as there is only European CPI numbers coming out during the day, and not much more. Ultimately, it’s likely that this market will be fairly quiet, but there are some trends that we see reemerging.

1 – For example, you will probably see energy falling during the day, as there is quite a bit of exhaustion and downward pressure in those markets. Ultimately, the market will continue to shun rallies when it comes to energy, so put buying opportunities should abound.

2 – The US dollar seems to be strengthening during the course of the session on Friday, and as a result we should continue to see US dollar strength in the short-term. This will also of course effect quite a bit of the commodity markets, so with that being the case it’s likely that they will fall in general.

3 – Ultimately, we do like precious metals longer-term though, because they tend to be more of a safety trade at the moment. Because of this, we feel that pullbacks will offer short-term opportunities to take advantage of value via calls. With that being the case, it’s very likely that the gold markets especially will go higher. We have no interest in buying puts when it comes to the market right now and as a result it is very likely that the market will continue to pull back and go higher each time.