During the day on Friday, we have several different announcements coming out, including the University of Michigan Consumer Sentiment numbers, the Core PPI numbers, and even Retail Sales out of America. Ultimately, we believe that the US dollar will be heavily influenced as well as the US stock markets. In general, we do for buying calls when it comes to the stock markets, especially in America.

1 – The US dollar is still strong overall, but it will be a bit of a mixed bag when it comes to currencies. We prefer the US dollar over commodity currencies such as the Australian dollar, New Zealand dollar, and of course Canadian dollar. On the other hand, though it appears that the Euro may still have some strength in it, so we are bit hesitant to favor the US dollar over the Euro.

2 – Commodities look soft in general, especially the oil and precious metals markets. Ultimately, this is a sector of the market that should continue to soften overall, so any time we get an opportunity to start buying puts, we do so on rallies as the commodity markets continue to show quite a bit of volatility and without a doubt quite a bit of negativity. Given enough time, we think that there is a lot of money to be made going against commodities in general.