Daily Trading Opportunities - Tuesday, January 24
With manufacturing numbers coming out of the European Union, and of course existing home sales coming out of the United States, we could have quite a bit of volatility during the day. We are watching the following 3 assets:
Gold
Gold markets are testing significant resistance, in the form of the $1225 level. However, after the initial search higher we started to see put buyers enter the marketplace. Because of this, it looks as if the markets are going to struggle to continue going higher. Perhaps this is where the put buyers make their stand.
DAX
In one of the more obvious trades that we see, the DAX continues to find call buyers every time it pulls back. It now seems that if the market can break out to a fresh, new high, the market will then take off to the upside. Call buyers continue to be very aggressive in this market, and it seems as if it is only a matter of time before they get their way.
USD/CHF
The US dollar is testing the parity level against the Swiss franc. The market has seen quite a bit of call buying near the 1.00 handle, and as a result we may get a bounce. On a break above the highs from the session on Monday, it’s likely that call buyers will start to take over again.
Disclosure: None.