Looking around the world, the one thing that we know right now is that far too many people are focused on Athens. Quite frankly, the reality is that the Greeks are not leaving the euro zone, and the Europeans are not trained the Greeks out. We’ve seen this movie before, and it always ends up the same: a temporary solution. With that, we base our thesis of trading around the world.
1 – We think that stock markets in general will do quite well based upon some type of deal being announced. This will be especially true in peripheral Europe, such as the Ibex and the MIB. However, don’t forget that the DAX and the FTSE will more than likely go higher as well as the CAC. In general, we like European stocks and believe the pullbacks will offer call buying opportunities going forward.
2 – Gold markets fell a bit during the session on Wednesday, as we are testing the area between $1170 and $1180. Because of this, we feel that it’s only a matter of time before support in her the market, so we are buying calls on short-term bounces. This is a short-term trade though, we are not expecting fireworks out of the gold markets.
3 – The GBP/USD pair fell significantly during the session on Tuesday, but we believe as long as we can stay above the 1.57 level, there is still a chance at a decent bounce. We’re looking for that bounce in order to start buying calls, as we believe that breaking above the 1.58 level was in fact significant for the British pound in general.
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