Daily Market Analysis – November 17, 2015

During the day on Tuesday, we have CPI numbers coming out of both the United States and the United Kingdom, and that of course will more than likely make the stock markets somewhat volatile during the day in both London and New York. With that being the case, the market looks as if it will probably focus on stock markets in general, so we will more than likely see most of our trading opportunities in those types of situations.

1 – Looking at this market, we believe that the DAX, as well as the rest of Europe will continue to go higher. Perhaps there was a bit of a “knee-jerk reaction” to the downside in most of the indices as it was the first opportunity to react to the Parisian terror attacks. However, at the end of the day for heads prevailed and we turned back around and continue the longer-term trend.

2 – Initially gold rallied, perhaps in reaction to that same situation in Paris, but the $1100 level offered enough resistance to turn things back around and form a massively bearish candle. Because of this, we believe that the bearishness in precious metals overall will continue, and therefore we have no interest in buying calls in either gold or silver at the moment, and believe that only puts can be bought today when we get short-term rallies.

3 – The US dollar should continue to strengthen, however we are not looking for some type of massive flood into that currency. It should just continue the trend that we’ve seen for some time.