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During the day on Tuesday, we get a couple of minor announcements coming out of Europe, but beyond that there isn’t too much to move the market so we will look to technical analysis to suggest as to where we are heading next.

1 – Looks as if the European indices will continue to go higher, as the DAX, FTSE, and CAC all look to be breaking out by the end of the session on Monday. With this, we believe that call buyers will continue to push these markets higher, and therefore short-term pullbacks might be call buying opportunities as well.

2 – Precious metals initially fell during the course of the session on Monday, but ultimately found call buyers below to turn things back around. Because of this, we believe that the precious metals markets will of course continue to find call buyers, as we will eventually go to much higher levels. Ultimately, there is no interest on our part to buy puts, as we believe that the precious metals markets will continue to benefit from a lot of economic uncertainty out there.

3 – The US dollar looks to be strengthening in general, so at the same time we get higher precious metals prices, we also get higher US dollar levels. This is especially true as the EUR/USD pair broke down, but we also have the USD/JPY pair going higher. This probably will indicate more of a move towards the United States and away from the rest of the world during the session.