Quiet economic calendar

Looking at the economic calendar for the Monday session, there's almost nothing to move the markets with perhaps the one exception being the German PPI number. That of course can move the DAX and the Euro, but at the end of the day we believe that in general the market to get a move on technical analysis.

Gold breaks down, offers one-way trade

The gold markets as you can see on this chart have fallen and as a result we are buyers of puts. We believe that this market will continue to go much lower, perhaps heading to the 1100 level next. If we get any type of short-term rally, we then start buying puts at that point in time as any time we rally you have to think of it as “value” in the US dollar.

WTI Crude Oil markets testing $50

The WTI Crude Oil markets fell during the course of the session on Friday, testing the $50 level. That being the case, the $50 level below is a massive support level, so we would not be surprise at all to see a bit of a bounce. If we get one though, there are going to be put buying opportunities after those bounces. On the other hand, a break down below the $50 level would be reason enough to buy puts as well.

USD/JPY pulls back slightly on Friday

The USD/JPY pair fell slightly during the course of the session on Friday, as the 124 level has offered quite a bit of resistance. With that being the case, the market should find buyers below as we have seen a massive move higher. If we get some type of pullback and signs of support, we will not hesitate to start buying calls. We feel the same way if we break above the high from the session during the Friday trading hours.