Market Analysis & Trading Opportunities - July 15, 2015

Regardless what happens during the session, you can count on headlines coming out of Greece one way or the other. There is a slight chance that the Greek Parliament won’t go along with the austerity measures, but at this point in time it is widely accepted that the Greeks are going to fall into line. With that, we can look at some of the economic announcements around the world as the more likely of the larger market moving event.

1 – Without a doubt, the largest one will be the Canadian interest-rate announcement, as it will have a massive effect on the Canadian dollar. At this point in time, it is widely believe that the Canadian dollar will probably continue to soften against most currencies around the world, not only because of the dovish stance of the Bank of Canada, but also the fact that the oil markets aren’t exactly looking healthy at this point in time.

2 – The stock markets in America will continue to be one of the “safest” investments out there, as it not only represents one of the few growing economies around the world that people are investing and right now, but also keeps you away from Europe in general. With that being said, we believe that the S&P 500, the Nasdaq, and of course the Dow Jones Industrial Average will more than likely find buyers, pushing levels higher. Even if we pullback in any of these markets, and that should just simply be a call buying opportunity at lower levels.

3 – Precious metals continue to be rather choppy, bouncing along the bottom of the recent consolidation area. This is especially true in gold, which we do prefer over silver at the moment. The reason we prefer gold over silver is simply because silver has far too much of an industrial component in the price to think that it will do better than gold. There’s just not enough industrial demand for metals at the moment, and that of course is going to work against silver in general. With that, we believe that short-term calls could be bought as we approached the $1150 level in the gold markets.