During the day on Monday, there’s almost nothing to move the markets as far as economic announcements are concerned. Because of this, it’s very likely that we will simply sit on the sidelines as far as impulsive moves are concerned. After all, there won’t be any great factors in making trading decisions that weren’t there the day before, unless of course we get some type of shock announcement. In the meantime, we are paying attention to the following three assets:

DAX

The German index still looks fairly healthy, but it is slowing down. This makes quite a bit of sense because we are not only in the middle of holiday season, but we are starting to run out of momentum when it comes to the upward move. Pullbacks at this point in time will more than likely attract value hunters, so at this point in time it’s likely that the call buyers are waiting just below.

Gold

Gold markets continue to look interesting over the longer-term, but at this point in time it appears that we are still stuck in consolidation. We believe the call buyers are going to continue to come back as market every time it dips, and a breakout could be coming. However, you will have to be patient waiting for that breakout, so more than likely will continue to be sideways back and forth, but upward biased trading.

USD/CAD

The Canadian dollar picked up a little bit of strength during the day on Friday, as we broke down below the 1.30 level. However, there is a lot of support just below so one has to wonder how much longer the buyers will run the show. This will of course have a lot to do with oil as well, as the Canadian dollar and oil is still heavily correlated. So having said that, we are cautious but recognize that the buyers are starting to take control.