Market Analysis & Trading Opportunities - August 12, 2015

Video Length: 00:01:43

During the session on Wednesday, there are a couple of announcements that could move the markets. We have Industrial Production coming out of China, and of course employment numbers coming out of the UK. The crude oil markets will get a bit of volatility due to the Crude Oil Inventories number coming out of America, and as a result we will look to specific markets for action.

1 – While we do believe that the Light Sweet Crude (WTI) markets look a bit overdone, we recognize that the market is probably going to aim for the $42 level. With this, we believe that the markets will continue to fall overall, so at this point in time we are still very bearish on petroleum but recognize that we are starting to come close to fairly massive resistance. With this, we are short-term put buyers.

2 – US stock markets pullback during the session on Tuesday as we continue to bang back and forth in fairly consolidative moves. We feel that this market is going to continue to do the same thing over and over, so we are looking for call buying opportunities on signs of support for the session. We are not looking for explosive moves higher though, as this time of year tends to be relatively benign.

3 – Currency should continue to be very choppy as well, but we do favor the US dollar in general. We think that the Canadian dollar is particularly vulnerable, but the Swiss franc is probably going to be very similar. We have no interest in trying to short the British pound at the moment though, and we believe that the Euro will continue to be very choppy in general.