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The general theme during the session on Tuesday will probably be technical analysis, as there really isn't much in the way of economic announcements. Because of this, we would anticipate the themes that we have seen for some time to continue.

US stock markets continue to be one of the more bullish markets that we follow, so we do believe that eventually the S&P 500, the NASDAQ, and the Dow Jones Industrial Average will all continue to go higher. This isn't to say that it will be a straight shot up, because quite frankly we have overextended the bullishness of these markets recently. Pullbacks will offer value though, and we suspect that short-term call buying opportunities will continue to be the way going forward.

We had a very destructive day in the gold markets during the session on Monday, as during Asian trading retail stops were absolutely blown out. Nonetheless, we did bounce a bit and as a result we look at short-term rallies as put buying opportunities, but would not hang onto a trade for any real length of time. We believe volatility will be the way going forward, but recognize that we are getting towards long-term support, roughly $100 below the current trading area.

The British pound continues to hang about the 1.56 level to the US dollar. We believe that this market will continue to be very volatile, but we do like buying short-term pullbacks on short-term charts. We would buying calls in those general pullbacks, as we believe the market is trying to finally build up enough momentum to break out. We have zero interest in buying puts at the moment, but would have to reconsider if we can get below the 1.55 handle.