British CPI should be focus
Looking at the session for Tuesday, the United Kingdom releases its CPI numbers. With this, the market looks as if it will probably focus on the United Kingdom in general, as both the British pound and the FTSE will be heavily influenced by this economic announcement.
FTSE looks supported
The FTSE looks supported at this point in time, as we initially fell during the course of the session on Monday, but found enough support at the 6500 level to turn things back around and form a bit of a hammer. Because of this, if we can break above the 6600 level we are buyers of calls in this market. We are also looking for call buying opportunities on short-term pullbacks and show signs of support all the way down to the 6500 level.
DAX looks like it’s ready to go higher
The German DAX found quite a bit of support at the €10,800 level, and then bounced enough to form a hammer. With this, the market looks like it’s ready to go much higher and therefore we are buyers of calls in this market. We believe that ultimately the DAX will head back towards the €11,600 handle. With no interest in buying puts.
Gold looks flat
Gold markets tried to rally during the course of the session on Monday, but quite frankly couldn’t really do much. With that being the case, we are looking for pullbacks in order to buy calls as we believe the $1100 level should continue to offer a bit of support in the short-term. We are not looking for major moves in one direction or the other.
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