The markets in general are going to continue to be volatile, but it appears that the Greeks are starting to back down from the old debt crisis issue, and as a result the market should have a general positive vibe to it, but we recognize that you’re going to have to keep your position size relatively small and most certainly short-term.
1 – With this, we believe that the S&P 500 will eventually break out above the top of the consolidation area, which has a barrier at the 2080 handle. With that, a move above there would be reason for us to assert going long. We believe that pullbacks will offer call buying opportunities as well, and it frankly have no interest in buying puts.
2 – Gold markets tried to rally during the session, but fell backwards as we formed a shooting star. With that being the case, the market looks as if it isn’t quite ready to go higher and as a result we feel that the market will drop a bit from here, probably testing the 1150 level for support. We are short-term put buyers on a break below the bottom of the range for the session on Friday.
3 – The FTSE rallied rather strongly during the session on Friday, breaking well above the 6650 handle. Because of this, we think the pullbacks continue to offer call buying opportunities, as the market should then head to the 6900 level. We have no interest in buying puts going forward.
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