Wanton destruction in the precious metals sector

There is almost nothing in the markets to move instruments as far as economic announcements are concerned, so we believe that technical setups will be the only way to play markets during the session on Tuesday.

Silver markets look interesting

There was a massive move to the downside in the gold market, as Asian traders were pummeled early on Monday. This could perhaps be “capitulation”, something that we look for at the end of a downtrend. Having said that, what we do find interesting is that the silver markets remained relatively stable, all things considered. Because of this, we recognize that the daily hammer that formed on the chart could be telling us that a bounce is coming. If we can get above the $15 level, we feel that this market will reach towards $15.50. This would have us buying calls.

CAC 40 looking ready to pull back

It looks as though the French index may pull back a little bit during the session on Tuesday, as we formed a shooting star during the session on Monday. This is a market that has broken above a couple of barriers recently, so it would not surprise us at all if we got a little bit of a bounce. We believe that the €5000 level is massively supportive, so any bounce higher between here and there is a call buying opportunity as far as we can see.

EUR/USD shows support at the 1.08 handle

The 1.08 level is of course psychologically significant, and as a result the bounce that we see at the moment doesn't surprise us. However, we believe that there is resistance above, so we are looking for some type of resistant candle in order to continue buying puts as the Euro continues to struggle.