During the session on Wednesday, it could be a fairly lopsided day as most of the volume will probably be found in the European Union. However, we do have quite a bit as far as announcements are concerned coming out of the United States, including Core Durable Goods, Crude Oil Inventories, Revised University of Michigan Consumer Sentiment, and Unemployment Claims. With this, we may have a bit of volatility in the beginning of the US session, but we suspect that things will quiet down fairly quickly as Thanksgiving is Thursday.

With this being said, we look for opportunities to short commodities. We will do this by purchasing calls in markets such as Crude Oil, as we are approaching significant resistance in the WTI Crude Oil market. With the crude oil numbers coming out during the day, any shock to the system will send the bullish traders back to the sidelines.

Precious metals rallied a bit during the session on Tuesday, but quite frankly we feel this is more or less a scenario in which the market is inviting you to buy puts. With the US dollar strengthening over the longer term, and quite frankly the fear of owning commodities being somewhat palpable, we believe that buying puts on rallies will be the way to go going forward.

Stock markets in general look a little bit soft during the session on Tuesday, but we are looking for supportive bounces in order to take advantage of perceived value. At that point in time, we would buy calls, especially in places such as Germany and the United States.