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During the session on Friday, we will have a plethora of economic announcements out of the United States. PPI, Unemployment Claims, and of course the University of Michigan Consumer Sentiment numbers can all move the stock markets as well as the US dollar. With this being the case, we recognize that most of the focus will be on the United States during the day, and as a result we are going to put most of her money to work in that general vicinity.

We believe that the US stock markets should show a bit of volatility, but we ultimately believe that they will continue to go higher. This does not mean that we are willing to take longer-term positions though, we believe that it’s only a matter of time before we go higher so we are looking for short-term call buying opportunities on signs of support.

Looking at precious metals, they look as if they are going to fall, but we are approaching support in general. We need to see bounces in order to start buying puts again. We especially are bearish on silver, because there is a serious lack of industrial demand.

Currencies will continue to focus on the US dollar and favor it overall, especially against commodity currencies in general, as there is a serious lack of demand for most of them. With this, the Canadian dollar, Austrian dollar, and New Zealand dollar will all be susceptible to selling pressure. This will be especially true against the greenback.