​Massive selloff in China

During Monday, the Chinese stock markets lost over a percent, which of course sent fear through the marketplace. We believe that this is a short-term opportunity to take advantage of fear. With this being the case, we look at some of the charts around the world.

The silver markets initially fell during the course of the session on Monday, but found enough support just above the $14.50 level to turn things back around and form a hammer. With that, the hammer matches the hammer that formed on Friday, and that of course suggests that there is a lot of buying pressure underneath. If we can break above the top of the range for Monday, we are buyers of calls as the market should then head towards $15. We believe that precious metals are probably did have a little bit of a bounce at this point in time in general.

US stock markets fell during the session as well, but quite frankly we feel that it’s only a matter of time before support comes back into the marketplace. We are looking for supportive looking candles on short-term charts or short-term bounces in order to pick up calls as the market is starting to represent quite a bit of value.

The British pound continues to climb in general, and we are bullish on it against most currencies, even against the US dollar. We believe that the GBP/USD will probably head to the 1.57 level against the US dollar, but quite frankly much higher against quite a few other currencies around the world.