1 – Looking at the markets for Monday, the Durable Goods Orders number coming out of the United States is probably the biggest announcement that will move the markets and therefore have people pain attention to the US stock markets as well as the US dollar itself. Having said that, we believe that the US stock markets will continue to pull back slightly, but eventually we should find buyers. We are not looking for any type of meltdown just that we had a little bit of an impulsive move recently. Because of this, we are buyers of calls in US stock markets on signs of support or bounces.

2 – Precious metals continue to get beaten up, and as a result we are buyers of puts every time this market rallies. What frankly, we think that rallies will offer “value” in the US dollar, and as a result we have no interest in buying calls regardless. Ultimately, gold should drop to $1000, and silver could very well find the $12 level given enough time.

3 – The British pound fell slightly during the session on Friday, dropping slightly but then fighting buyers towards the end of the session. Because of this, on a move back above the 1.55 level, we are buyers of calls as the market should then head to the 1.57 level given enough time. We have no interest in buying puts, and we believe that there is more than enough support below, extending to the 1.52 level to keep us from doing so.