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With a plethora of minor announcements coming out during the day, there always is the possibility that we get a bit of volatility, but at the end of the day the market will more than likely follow technical analysis as there is nothing in the way of a major announcement to worry about.

1 – The US dollar seems to be strengthening a bit, and we believe that will be the next move. Ultimately, expect a lot of volatility in the currency markets, and as a result we believe that buying positions in favor of the US dollar overall will probably be the best way to play the markets, at least for the session if not longer.

2 – Precious metals should continue to strengthen, but we like buying calls based upon pullbacks in order to take advantage of a little bit of value. After all, these markets have seen quite a bit of bullish pressure lately, so pullbacks to try to build up enough momentum to finally continue going higher over the longer term. We have no interest in buying puts whatsoever.

3 – It looks as if the European indices are going to continue to grind to the side for a while, but we believe sooner or later there should be call buying opportunities that we can get involved in. A supportive candle should be reason enough to start buying calls in the DAX, the CAC, and others. Even though we look a little bit extended at this point in time, we believe that eventually the call buyers will continue to pile into these markets and eventually drive the value of the stock markets much higher.