Fast Break for Traders: The Week Ahead

Week of April 14, 2008

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5 Hot Picks by Sterling 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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S&P 500

We seem to be getting more jitters after Friday's problems with GE, a weakening technical picture indicates that we will like see price try work to the downside this week.

July Sugar

July sugar is recovering nicely from the big price drop, and with crude staying firm and grain prices high, I am looking for sugar to have another strong week.

July Cocoa

July cocoa is also in recovery mode after one of the most breath taking drops I have ever seen in that market. Here too, I am looking for more upside action , and a close above 2600 would be very supportive.

June Hogs

June hogs, with grain prices as high as they are we just can't continue to keep the hog market down here, I am looking for the market to eventually close the gap up around 77.00, and a close above 72.00 today could get things going.

June Gold

I am looking for choppy at best action here, as the market continue to have difficulty getting traction over the last few session, and any breaks in here could be rather large.

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.

Corn, watch it grow.
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Dec Cotton

Buy Dec Cotton in the 81.00-80.00 trading range. We have the highest ending stocks total since the 1966/1967 crop season. Also, we have the lowest projected planted acres in the last 25 years. I think Dec Cotton should test the 90.00 level. You might want to place a stop in the 78.50-77.50 level.

July Sugar

Buy July Sugar in the 12.30-12.00 trading range. The fundamentals are questionable, but the outlook for Food and Energy commodities are bullish. You might want to place your stop around the 11.40 level.

June Lean Hogs

Buy June Lean Hogs in the 66.00-64.00 dollar trading range. We will have lower production in the coming months and demand is up about 10%. I would place my stop about 3.00 from my entry price.

Dec Corn

Buy Dec Corn in the 5.80-5.75 trading range. We will lose a projected 6-8 million planted acres in corn this year. Risk 20 cents from your entry price.

Recommendations for Spread Traders

Buy Dec Cotton/Sell July Cotton at the +7.40. Target about 3.00 to 4.00 from your entry price.

Buy Feb 09 Lean Hogs/Sell Aug 08 Lean Hogs @ $3.50 with a target range of $3.00 to $4.00 from your entry price.

Buy Dec Corn/Sell July Corn @ +6 cents. Target 20-25 cents from your entry price.

Note: Past performance is not indicative of future results. The information contained in this report is intended for informational purposes only and is the opinion of the writer and may change at any time. This information was compiled from sources believed to be reliable but accuracy cannot be and is not assured. There is no warranty, expressed or implied, in regards to this information for any particular purpose. There is SIGNIFICANT RISK involved in trading futures and or options on futures and may not be suitable for all investors. Investors should consider these RISKS and evaluate their suitability based on their financial conditions. No one should ever consider trading futures or options on futures with anything other than RISK CAPITAL. This information is provided freely and is NOT in the capacity of a trading advisor. NO LIABILITY on the part of the author exists for any trading loss you may incur in the use of this information. Information provided is not to be construed as an offer to sell or solicitation to buy any commodity or security named herein.

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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.