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Looking at the Friday session, without a doubt the most important thing to pay attention to as far as the economic calendar is concerned, is going to be Nonfarm Payroll numbers. Because of this, we think that the markets will be fairly quiet until that announcement comes out, but ultimately the market will try to find some type of momentum from that announcement. The EUR/USD pair has broken down during the session on Thursday, testing the 1.10 level for support. If we break down below there, this pair could very easily find its way down to the parity level over the longer term. Rallies from here will more than likely offer nice put buying opportunities as the downtrend continues to strengthen.

1 – Looking at the WTI Crude Oil market, we believe that the market will continue to have bearish pressure, so we are buying puts every time we see signs of resistance. This is going to be true on short-term charts, as well as longer-term charts. We think that the oil market continues to show bearish pressure.

2 – Looking at the S&P 500, we believe that the market ultimately is in an uptrend, but ultimately we recognize that there is going to be a lot of choppiness in the meantime. We buy calls on supportive candles below, as well as a break out to the upside, and recognize that a move above the 2120 level as been massively bullish.

3 – The DAX continues to be very strong, so therefore we are only buying calls in this very bullish market. We believe that the €11,200 level is massively supportive, so that any pullback to that area represents a strong value, and what we believe will be one of the better performers in the European Union. We have no interest in buying puts at this point.