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The gold markets tried to rally during the session on Wednesday, but as you can see the $1200 level offered enough resistance to turn the market back around. Because of this, the market looks as if we could sell off from this area, but quite frankly we think that if we can break above the $200 level that might be a nice call buying opportunity. We also would anticipate a bit of support at the $1180 level, and as a result we would be call buyers in that general vicinity on signs of support as well. However, we are aware the fact that we could sell off from this area as well, so we will be paying attention to daily closes, and if they are resistive looking candles, we could be convinced to start buying puts, and we will address that if we do see that happen.

The EUR/USD pair continues to try to rally, but Wednesday ran into trouble at the 1.10 level yet again. Ultimately, we believe that buying puts every time we get close to that area is probably going to be the way to go going forward, and if we can break down below the bottom of the Wednesday and the Tuesday session, we feel that the market should then break down significantly and probably head back to the 1.05 handle.

We believe that the S&P 500 is pulling back a little bit, and if we can find some type of supportive candle we are more than willing to start buying calls yet again. We believe that the market will eventually break out to be fresh, new high, that of course we have been talking about for some time.