1 – Looking at the GBP/USD pair, we did have a fairly negative start to the week, but by the time the Monday markets closed we ended up turning back around to form a bit of a hammer. This of course is a very strong sign, and we believe that the market will eventually head higher. However, having said that we are willing to wait for resistance in order to buy puts. We believe the longer-term trend will continue so therefore we are looking to buy bearish positions and recognize that this could signal a bit of value in the US dollar.

2 – The S&P 500 fell initially during the session on Monday, but found the area below the 2100 level to be supportive enough to turn things back around. Because of this, we believe that the S&P 500 is going higher, and therefore we prefer to buy calls. We believe eventually this market will break out to a fresh, new high.

3 – Gold markets had a fairly bearish session during the day on Monday, dipping below the $1200 level again. Because of this, we feel the gold is just simply going to grind sideways and will be very difficult to trade over the next couple of sessions. We recognize that there is a larger consolidation area between the $1180 level on the bottom, and the $1220 level on the top. Into we break out of this range, we believe that most of the action will be of the shorter-term variety at best.