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During the day on Wednesday, we have a ton of economic announcements coming out that could move the market. With that being the case, we expect to see quite a bit of volatility and it's likely that there will be a massive amount of trading opportunities out there.

1 – We still believe that the energy markets will be soft, and that shouldn't be any different today. There is a short-term bounce of sorts, but in the end it is the longer-term negative trend that we see so we are buyers of puts when it comes energy markets going forward. We also feel the same about the Canadian dollar as it is so highly leveraged to petroleum.

2 – Ultimately, we think that stock markets are trying to get a little bit of a bid at this point, but keep in mind that they will be very back-and-forth type of market. Short-term calls will probably be about the only way to play the newfound strength. This is more or less going to be a “dead cat bounce”, so having said that it is a short-term anomaly in what is a longer-term downtrend.

3 – Ultimately, we do favor US assets over European ones, especially considering that the ECB has now suggested that perhaps there is a threat to the European economy in the form of the selling off of the major banks. With this, we believe that precious metals still rule the day, and everything else is a different world altogether. We do prefer the US simply because of the perceived stability.