Dead of summer
During this time of year, volatility becomes an issue because most large firms have their major traders away at holiday. With this, you can expect short-term trades only at this point in time. We do see a couple decent trends out there though, and of course we will point you in the direction of them.
Range bound S&P 500
We believe that the S&P 500 will continue to be range bound, essentially finding buyers down at the 2070 handle, and sellers at the 2110 level. With this, we are looking to buy calls on short-term supportive candles in the general vicinity of 2070, with the target of roughly 2100. We have no interest in buying puts at all right now.
Gold markets get rattled
Gold markets look like they are ready to go little bit higher, but quite frankly there is a massive amount of selling pressure above. With this, we think that if you are a little bit more willing to take risk, you could start buying calls above the $1120 level. On the other hand, if you are more patient you can start buying puts on resistive candles above and extending all the way to the $1150 level.
DAX falls hard
The German index fell rather hard during the course of the day on Tuesday, but we see all kinds of support near the €11,200 level in the form of 3 hammers from 2 weeks ago. Also, we see that the €11,000 level offered quite a bit of support last time as well, so we are simply waiting to see if we can get a bounce in order to serve buying calls at this point.
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