Looking at the S&P 500, we initially fell during the course of the session on Monday, but found enough support in the neighborhood of 2080 to turn the market back around and form a bit of a hammer. With that being the case we are buyers of calls only and believe that the markets will ultimately break out towards the 2030 handle again.
Looking at the EUR/USD pair, we believe that the market will continue to bounce around in a very well defined range. We believe that the 1.11 level on the bottom is the support and as a result we are buyers of calls close to that level, just as we are buyers of puts close to the 1.14 level as it is significant resistance. In the short-term, we believe this market will continue to go back and forth overall, and will provide more than enough volatility for short-term traders to be pleased.
WTI Crude Oil initially fell during the course of the session on Monday, but found enough support below to turn things back around and form a nice-looking hammer. This hammer suggests that we are in fact going to test the highs again. The $62 level is the resistance though, so we think that breaking above the $62 level would be a sign that we could enter a longer” buy-and-hold” type of situation. We are buyers of calls also when we did up in order to take advantage of value.
The GBP/USD pair is trading higher during the session on Monday. We would be buyers of calls for the GBP/USD as it closed above the support level at 1.5436. Near-term resistance is at 1.5700 with a break above that on a daily closing basis exposing the next level at 1.5810.In case of a move below the 1.5436, we could be buyers of puts.
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