Fast Break for Traders: The Week Ahead

Week of March 10, 2008

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5 Hot Picks by Lee Gaus of EFG Group

Lee Gaus has thirty years of experience in the commodities industry. In 1992, Lee established EFG Group along with his two partners who are long-time friends. Since then, Lee has traveled the U.S. conducting seminars and trading meetings for retail traders and commodity offices.

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In my view markets are edgy because of the rumored bank squeeze on hedge fund financing. I am guarded at the present time to take an aggressive stand, and therefore would rather look at spreads where available in the grains and oilseeds. Given this, if you elect to trade make sure you have your big boy and girl undies on and realize the risk you are accepting.

Soybeans

Buy July Beans/Sell November Beans around a dollar over the July for the aggressive trader, and around 90 cents over for the more conservative trader.

Corn

Buy December Corn/Sell July Corn around even money for the aggressive trader and around 5 over July for the more conservative trader.

Wheat

Buy May KC Wheat/Sell May Chicago Wheat at 55 cents premium KC.

Bonds

Buy June Bonds around 117 to 117.04.

British Pound

Buy June British Pound around 2.000.

5 Hot Picks by Smith of FuturesOne

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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Nothing like some wild market behavior to rattle everyone's cage. While many things this morning are still in sell-off mode, and end to this should be nearby. So today we are going to look at some potential bargains out there.

Gold

While the last week's behavior has been bad, I think if we can manage 3 closes in a row above the 970 level in row, the bull should be back with a vengeance.

Sugar

This bull stumbled hard and quickly after getting a little ahead of its self, if we can stay above 13.00 on the July contract and close the week above that level we should be looking for higher prices.

Soybean Oil

Way too much money got made on long side way too fast, and the market is taking it back just as fast. Look for May bean oil to stabilize around the 57.00 level, and then we can feel bullish again with three closes back above 58.00.

Coffee

Coffee has experienced a wild ride up and then a nasty fund led sell off, look for three closes above 150.00 on the May contract, the bulls should be back in charge.

S&P 500

Bargains in the stock market? Maybe. If we can hold 1280 on the March contract, we should be able to manage at least reasonable near term bounce. However trade below 1275 could bring a hasty washout day.

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Disclaimer: The Commodity Futures Trading Commission has asked us to also advise you that trading futures is not without risk. While there is opportunity for incredible wealth building, there is also the risk of losing even more than you invested. Of course, that's not unlike most other businesses. But informed traders are the best traders! Opinions expressed by Fast Break authors are not those of FutureSource.