With the Greek referendum and all of the drama surrounding that continue to drive the markets, it is difficultto imagine the market settling down anytime soon. With that, there are several markets that are showing extreme moves right now that we think can continue.
The WTI Crude Oil markets fell again during trading on Tuesday, and looks set to reach towards the $50 level. With this being the case, we buy puts every time this market rallies, and recognize that $50 could be supportive.However, we think that we are going to break down below there given enough time. We for a rally, and then start buying puts.
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The GBP/USD pair broke down during the session, slicing through the 1.55 level. Because of this, we did not look very bullish, and as a result we think the market is probably heading down to the 1.52 handle. With this, the markets offer put buying opportunities on a continuation of the move lower, or any short-term rally that fails below the 1.55 handle.
Silver markets broke down below the $15 level during the session on Tuesday, losing all vestiges of bullishness. With this, we believe that silver continues to go much lower, and that it’s only a matter of time before every rally becomes a put buying opportunity. We have no interest whatsoever in buying calls.
The Euro declined against the Japanese Yen after the daily close below the rising trend-line. We favour of buying put options. Near-term support is at 133.10, with a break below that on a daily closing basis exposing the support level at 131.60. In case of a move above the 135.00, we could be buyers of call options.
The USD/CAD pair is trading higher. We would be buyers of calls for the USD/CAD as it closed above the resistance-turned-support level at 1.2670. Near-term resistance is at 1.2780 with a break above that on a daily closing basis exposing the next level at 1.2833. In case of a move below the 1.2670, we could be buyers of puts.
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