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| 5 Hot Picks by Sterling Smith of FuturesOne |
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| Sterling Smith is developer and publisher of the FuturesOne Power Index, and a 15-year market veteran. Registered as a CTA he is a noted Coffee, Sugar and Cocoa analyst. Sterling works with clients of all sizes to help improve their trading. |
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We are off to a great start this week and continued strength should keep the bulls in charge for quite a while. |
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The dollar index is still grinding towards a very major support area, and while I think the dollar will break down at some point, I don't think we are to that point yet, so I am looking for some consolidation and some sort of bounce here. |
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Continued crop woes in the Ivory Coast continue to support prices despite the improving political picture there. The charts continue to be supportive and as we move into the July contract, I am looking for another leg up here. |
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After last week's severe squeezing, some sort of recovery bounce seems likely. I am not ready to be a buyer yet, but it is on my radar screen. |
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I am looking for a little more congestion here and then for price to continue their upward trek. |
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| 5 Hot Picks by Phil Flynn of Alaron |
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| Phil is Vice President, Energy and General Market Analyst with Alaron Futures and Options and is one of the world's leading energy market analysts. His market commentary, fundamental and technical analysis, and long-term forecasts are sought by industry executives, investors and media worldwide. |
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Last week oil finally started its move higher. Refinery issues have dogged the crude oil and refinery outages have made the crude that's traded at the NYMEX get out of whack with the rest of the world. As the US refiners come back online we may find that crude is very under valued. We recommend last week to buy June Crude at 6550 with a stop of 6150 we are still targeting $78! |
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Hurricane fears are a major new spring pricing component in April and May in the natural gas but who would have thought that heating demand is also? The natural gas could see an unseasonable draw as the weather in the month of April has been colder then January. Still hurricanes are an issue. Natural gas is still in a vulnerable position. Supplies of gas are below year ago levels and the demand for gas going forward looks like it will be stellar. Electricity demand has been running near record highs and that may take a toll on the natural gas refill season. As we said last week we all remember the damage that Hurricane Katrina caused .If you can believe the weather forecasters, we could
be in for a very active and dangerous hurricane season.
If we do the price of gas could hit a new record high. One way to play the Hurricane is to buy a September 15 call at 0.052. It finished Friday at 0.068. If you can take the heat buy September natural gas at 800 with a stop at 700 objective 1070. |
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Last week we were talking about forgotten cotton. We thought that it was time to buy but I guess we should have forgotten about it. July Cotton still seems to be the weak sister in the softs complex. We saw Cotton get hit last week as the contract is still fighting to from a bottom. We saw the market really get hit as the Asian stock market blues gave fears that their demand for cotton would be poor. As the Asian market stabilized the cotton fought back. China demand for cotton has been rising as export sales came in at a better than expected 360,460 bales. Still, farmers have reduced cotton plantings to jump on the corn ethanol powered band wagon so we may want to try it again. Buy July
cotton at 4920 with a stop at 4820. |
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We just missed our silver buy order at 13.600 last week, but we want to try it again, The Silver market is trying to recover from the Asian flu. Silver traders panicked as the Asian stock market tumbled. Yet the flu turned out to be just a cold. The outlook for demand has improved significantly as the Asian stock drop now looks like a healthy correction. A strong Asian economy means strong demand for silver. A weak dollar rally is adding to the momentum. Also other metals markets are strong! Buy July Silver at 14.100 with a stop at 13.700! |
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We thought the OJ would get all juiced up yet it seems we were a bit short of vitamin C. The OJ market has had a run of bad luck and if it isn't hurricanes reducing the crops it's the effects of crop disease. This years production could fall as low as 132 million boxes. That's a drop from last year's 220 million boxes and the smallest expected production in the last twenty years. Now add in the fact that weather forecasters are predicting a record hurricane season and the potential for a big move may be high. Last week we wanted to play a November 215 call. Let's buy the 215 call at 200. |
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