Looking at the day on Thursday, without a doubt the most important announcement will be coming out of the ECB, as they will make a decision on interest rates. It isn’t that we believe that the interest-rate will be moved, it’s whether or not they had more stimulus to the quantitative easing that they have been dealing with. They do it could be a very significant day for the Euro.

1 – With this, we think there is more risk to dollar strength in this than weakness. We are buyers of the US dollar via calls and puts during the day, and believe that the overall trend of US dollar strength should continue. Because of this, we think it will affect almost every market out there during the day, but keep in mind that we could have a little less than expected as far as movement only because of the impending jobs number coming out on Friday.

2 – Given enough time, we believe that precious metals will break down and through significant support. Because of this, we believe that put buying is the only thing you can do in precious metals and with that we believe that it’s only a matter of time before gold and silver stumbles on a rally. We believe that the commodity markets in general will continue to take a bit of a beating, and as a result feel the same and natural gas, oil crude oil, and just about anything else at this point.

3 – On the other hand, stock markets will probably do fairly well, only because of the central bank quantitative easing that we see everywhere right now. We are particularly interested in European indices such as the DAX and CAC, as the Europeans could choose to stimulate more today.