During the day on Friday, we have several announcements coming out, and as a result we believe that the markets could be fairly volatile. We have the German Preliminary GDP numbers, EU Flash GDP numbers, and University of Michigan Consumer Sentiment numbers. In other words, there are a lot of things that will push the market around during the day today.

1 – We believe that the US dollar will continue to strengthen overall, and it’s only a matter of time before you can start buying positions in favor of the greenback. On top of that, it’s very likely that the greenback will continue to be the favored currency around the world, and as a result we are not willing to trade against it.

2 – European markets continue to be volatile, but we believe in the longer-term uptrend. This is especially true considering that the Euro has been losing strength for some time now. We believe that the Euro will continue to fall significantly, and as a result European indices can be traded via calls on short-term pullbacks.

3 – The strengthening US dollar of course works against most commodities, and the oil market has certainly shown this to be the case. We also believe that precious metals will be longer-term bearish, so every time any of these markets rally, we have to be looking for put buying opportunities on short-term charts.