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During the session on Monday, stock markets around the world sold off in a very vicious manner. Because of this, we believe that the next couple of days will probably be about healing. After all, 8 and 10% losses were seen in very wide-ranging markets, and then significant bounces shortly after that. With this, we feel that the market isn’t solid enough to trust at the moment, so as far as stock indices are concerned, we are on the sidelines as a couple of days of stability will be needed.

1 – Commodity is all look fairly soft, and look like they are ready to continue to struggle. With this, it’s more than likely going to be sure lower oil prices, as that downtrend seems far from ending. We also don’t trust precious metals at the moment, and believe that they are overdue for significant selling. This is especially true in the gold markets in our opinion.

2 – The currency markets have seen a significant change in attitude as the Euro climbed drastically against the US dollar. We believe that the EUR/USD pair has essentially changed trends, and that means that the market will start to favor the Euro overall. With this, the market is now starting offer call buying opportunities on pullbacks as far as we can see. With no interest in buying puts, at least not until we get well below the 1.14 handle, and even then we will have to reassess everything.