Defense: Finish the ADs. You never know how useful they can be when upgraded, not just as a lavaloon deterrent.
Offense: Someone mentioned "upgrade the queen" and I would second that. I would also look into getting the king upgraded as well. In the meantime you can also upgrade the remaining barracks (so that you don't have to do them much later) as well as dark factory (bats are still crazy good with hounds apparently, even at level 1)