Daily Market Analysis - 1/4/2016

 

During the day on Monday, we have several announcements coming out of various European countries in the form of Manufacturing PMI, so we believe that a lot of the focus will be upon European stock markets such as the DAX, the CAC, and others. With this, we think that quite a bit of attention will be paid to the Manufacturing PMI numbers as to which direction the stock markets travel, so we could have quite a bit of volatility and reaction.

1 – We believe that precious metals will continue to fall given enough time, and as a result we have no interest in buying calls and believe that rallies the show signs of weakness will be put buying opportunities again and again. The gold and silver markets certainly have been very negative, and we believe that should continue.

2 – Energy markets should suffer as well, even though we’ve had quite a bit a bounce in the natural gas markets at the end of the year. We believe that the energy markets in general will be will continue to be soft going forward, and because of this, call buying isn’t even a thought.

3 – Overall, we still prefer the US dollar, and believe the pullbacks in the value of that currency will be looked upon as opportunities to purchase the US dollar based upon value. We will trade in favor of the US dollar and most Forex pairs, and that should continue to be the way going forward.