Market Analysis & Trading Opportunities - 8/26/2015

Without a doubt, the massive amount of destruction during the session on Monday should the markets to the very core. However, we feel that stock markets in America are going to offer value. Yes, there are questions about the economy, but at the end of the day the bond markets are offering absolutely no return on your capital. With that being the case, it’s probably only going to be a matter of time before buyers step back into the stock markets in America, and as a result we have seen the buyers get involved, and as a result we feel it’s only a matter of time before they rebound.

1 – The Euro should continue to strengthen, although we did pullback a bit during the day on Tuesday. Ultimately, we believe that this pullback is simply going to be an opportunity to buy the Euro at lower levels. We are looking forsupportive candles in the EUR/USD pair in order to serve buying the Euro via calls. We believe that the Euro has been oversold for a very long time, and we are now starting to see a reversal of fortunes.

2 – Precious metals will continue to suffer, and therefore we are buyers of puts any time we get an opportunity. We have no interest in buying commodities in general right now, because of all of the uncertainty. Look for rallies and commodities to be put buying opportunities overall. We believe this will be the way going forward for the foreseeable future.