There are plenty of Chinese numbers coming out during the day which could give us a little bit of a “risk on/risk off” type of market, so we believe that it is probably only a matter of time before we get some type of serious motion in the day. Because of this, we believe that the stock markets will be highly sensitive to the Chinese numbers it, especially considering that they have been so volatile.

1 – Pay attention to gold, recently it has been a bit of a safety trade, and as a result it could find buyers if we get bad numbers out of China. Ultimately though, we believe it is in an uptrend anyways, so pullbacks will more than likely be call buying opportunities based upon value given enough time.

2 – The Euro fell pretty hard during the session on Friday, and as a result we believe that the overall strength in the US dollar should continue. With this, we pay attention to the risk appetite for the day, and if people are a bit concerned at this point in time, the US dollar will more than likely end up being one of the favorite assets to own.

3 – European stocks in general look like they are trying to find a floor at the moment, but expect a lot of volatility. We prefer to buy calls given enough momentum, and at this point in time are stepping on the sidelines as far as puts are concerned.