The markets in general were pretty volatile on Friday, as the US dollar get pounded. This was most obvious in the EUR/USD pair, but ironically crude oil still could not find any type of bid. There was a little bit of support near the $40 level as one would anticipate, but overall it looks as if the Euro is finally getting a bit of a reprieve. With this, we think US dollar weakness will continue against specific currencies, but not necessarily against commodities.

1 – The US stock markets fell apart during the session, and it does look like we are trying to find massive support somewhere near the 2000 level in the S&P 500 specifically. We believe that it’s only a matter of time before we get a bounce though, so we are cautiously optimistic but recognize that stock markets need to stabilize before you can start buying calls.

2 – Precious metals look strong, as they are broken out due to the soft US dollar in general. We believe that this is short-lived though, as the gold markets struggled above the $1160 level. We are waiting see if we get some type of exhaustion in order to serve buying puts in that particular market in feel that silver won’t do any better. Ultimately, the markets are simply showing quite a bit of volatility towards in the summer as there isn’t much in the way of volume.