During the session on Wednesday, the ADP Employment Change numbers will more than likely be the biggest mover of markets. Because of this, we will keep our eye upon the US stock markets, and of course the US dollar. Employment is one of the biggest drivers of the markets, especially considering that the Federal Reserve is now ready to raise interest rates, but at the same time several market participants are starting to doubt this.
The NASDAQ initially fell during the course of the day on Tuesday, but found enough support near the 4150 level to bounce and perhaps turn back around. With that being the case, we have broken above the 4200 level during the day, and as a result we are looking to buy calls, this will be especially true if the ADP numbers are strong.
Ultimately, the precious metals markets look as if they are going to dip from here, so therefore we are buyers of puts in both the gold and silver markets. The meantime, we look at every rally as a potential put buying opportunity.
Looking at the USD/CAD pair, we bounced off of the 1.31 level in order to show a continuation of the uptrend, and quite frankly the market looks like it’s ready to continue to consolidate in this general vicinity. If we can get above the 1.33 level, we will ultimately go much higher.