There are only a couple of treasury auctions and that will be hitting the news cycle during the session on Monday, so quite frankly we feel as if the markets will probably follow technical analysis more than anything else.
We believe that the S&P 500 will offer quite a bit of value if we can stay above the 2000 level. This is a large round number, so obviously it will attract a lot of money. If we can stay above 2000, we be buyers of calls as we could go as high as 2040 over the next several sessions.
The EUR/USD pair surged higher during the session on Friday, as we approached the 1.14 level. The 1.14 level is vital as far as we can see, as it was resistance previously. Also, you have to keep in mind that the market has rallied quite a bit in such a short amount of time that it leads us to believe that sooner or later there will be a resistive candle. Once we get an exhaustive candle, especially the near the 1.14 level, we would be put buyers.
Unlike gold, silver struggled as the resistance at $15.50 offered far too much for the buyers to continue pushing the market higher. With this, we believe that anytime you get a short-term rally in the silver market you have to be looking at buying puts.
The USD/JPY prices are downward trading and below the support-turned-resistance level at 121.50. We could be buyers of puts for the USD/JPY. Near-term support is at 120.65 with a break below that on a daily closing basis exposing the next level at 120.30. In case of a move above the 121.50, we could be buyers of call options.
CRUDE OIL prices are in strong bearish momentum, testing the 2009 lows. It could be interesting of buying put options. Near-term support is at 37.50, with a break below that exposing the level at 35.18. In case of a move above the resistance level at 40.00, we could be buyers of call options.
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