1 – The EUR/USD pair tried to rally during the course of the session on Wednesday, but turned back around to form a shooting star. The shooting star sits on top of the 1.08 level, and if we can break down below there the market should continue to go much lower. The 1.05 level below is the target if we get down below that area, and that should continue to attract more and more sellers. We are buyers of puts below that level. We also believe that rallies at this point in time as there is plenty of resistance above.
2 – The WTI Crude Oil market fell a bit during the session on Wednesday, and as a result it looks like we are going to turn back around and continue the consolidation. We believe that the market should then head to the $44 level given enough time, but we also recognize that there will be quite a bit of volatility. Either way, the only thing that we can do is buy puts at this point.
3 – The FTSE rally during the session on Wednesday as well, but ran into far too much trouble at the 7000 level. Because of this, we ended up forming a shooting star and it suggests that the market will more than likely fall from here. However, we believe that this is more or less consolidation, so short-term puts could be bought on a break down below, but at the end of the day we still believe that the market is in a longer-term uptrend, and as a result we are much more comfortable buying calls in general.
Comments
Log in or sign up to join the conversation.