The markets will be focusing on German and US employment numbers during the session, so we think most of the market movement will be in European stocks, specifically Germany, and of course the US. We believe that the US stock markets are trying to get their footing back after the selloff in China, so therefore we are looking for buying opportunities.

We will keep our trades set up so simple as possible, simply buying calls on a break out above the top of the range for Wednesday in the US stock markets. Our favorite stock market is the NASDAQ, as it has been one of the more consistent and bullish markets over the last several months. We believe that the NASDAQ will continue to lead the way, but quite frankly most American stock indices should do well.

We particularly like the DAX as it showed a bit of support during the session on Wednesday, and we also recognize that there is a significant amount of support just below. However, we also like the CAC quite a bit as well, and would be buying calls on a break out above the top of the range for Wednesday. We believe the European stocks will continue to grind higher, as stability reenters the market.

Gold markets still remain very flat, we believe that most traders are simply taking a break after the recent break down. With this, we would look to buy puts on short-term rallies that show signs of exhaustion, but beyond that we are not looking for fireworks anytime soon. We believe that a rally could come, but at this point in time we would be very suspicious of any bullish activity in the precious metals space, especially gold.