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During the session on Friday, there are a couple of announcements they can move the marketplace, both coming out of the United States. We have the University of Michigan Consumer Sentiment, and of course the Industrial Production numbers. With this, we see a very US centric type session forming, and as a result we will have to pay attention to the US stock markets, and of course the US dollar.

1 – It appears the US dollar itself is getting softer, so as a result we are starting to buy other currencies via calls but recognize that there is still quite a bit of momentum to be built up. Whether or not the actual breakout can be had on a Friday might be a different question altogether, so we may have to stick to short-term charts, betting against the US dollar.

2 – One thing that the US dollar falling will help is US stock markets. Therefore we like the idea of going long most indices, and therefore are call buyers in the NASDAQ 100, the S&P 500, and of course the Dow Jones 30. We would wait for pullbacks though, as the volatility should continue to offer more and more opportunities.

3 – Precious metals should continue to go much higher as well, a falling US dollar will of course facilitate this. Gold is especially interesting as it seems to be a bit of a “safety play” at the moment. Anything that is away from paper currency is probably favored going forward, simply because the central banks seem to be stuck in a currency war.