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During the course of the day on Thursday, there are quite a few announcements coming out, but quite frankly the Non-Farm Payroll Numbers will of course take center stage on Friday, and this could be a bit of an overhang during the course of the session on Thursday. That being the case, the market looks as if it will be choppy in general.

1 – Ultimately, we believe in the long-term efficacy of the uptrend in the gold markets. With this, we are buyers of pullbacks via calls, and of course believe that fresh new highs of course offer call buying opportunities as well. At this point in time, we believe that the $1200 level below should be support, and therefore a bit of a floor in the market.

2 – Looking at the energy markets, it appears that the petroleum markets are trying to break out. However, there is such a massive downtrend in this market that we are simply waiting to see some type of exhaustion that we can serve buying puts based upon. Yes, it’s been a fairly impressive rally at this point in time in there are some things moving the markets, but at the end of the day there is far too much supply.

3 – The European indices in general look like they are ready to break out, and then perhaps reach above the significant resistance barriers above. That being the case, the market should go higher given enough time, so pullbacks that show signs of support could be reason enough to serve buying calls, just as the aforementioned breakouts. We particularly like the DAX and the CAC, but realize that the MIB could also be a very bullish market.