During the session on Wednesday, the ADP Employment Change Numbers come out, and that of course is the precursor for the Nonfarm Payroll Numbers coming out on Friday.
Because of this, we feel that there could be a bit of volatility in the US stock markets, but it should be noted that the big number doesn’t come out until Friday. With that, we think that any initial reaction will probably be tempered later in the day.
1 – We do believe that US stock markets will eventually go higher, and that the volatility will be thought of as a buying opportunity going forward. With this in mind, we look for opportunities to take advantage of pullbacks. It will be rough though, do not forget that and as a result you will have to be very aggressive in taking profits. Ultimately though, we do feel that the buyers will win out.
2 – Precious metals will continue to find sellers every time they rally, and we look at rallies as potential selling opportunities. We have no interest in buying calls and will only buy puts at this point in time. Given enough time, we feel that value will reenter the market, but at much lower levels than currently seen.
3 – Oil markets pullback a little bit during the session on Tuesday, but quite frankly with the Crude Will Inventories numbers coming out today that could be wiped out immediately. We are looking for pullbacks and show signs of support in order to serve buying calls. We believe that the trend is changing right before our eyes.
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