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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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| Oil has had one record high after another. Still there are signs that this run is coming to an end. China demand fell sharply in April and the dollar is showing signs of firming. The Dollar has been a major driver of oil and if it firms oil will not be able to hang on to these gains. Oil should correct. Sell June crude at 12700 stop 12750. | |
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We all love chocolate but I like cocoa short for a couple of reasons. One is that high food prices may slow demand for chocolate as other foods are becoming so expensive. Major food stuffs will edge out some cocoa demand as many will have less money for treats. The Market has consolidated over the last few weeks and the formation is starting to look awfully heavy. We feel Cocoa is ready to break out to the downside. Look to sell July cocoa at 2750 with a stop 2830. | |
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| The wheat market has been a day traders dream. The Market has been trending down lately and has had a tendency to open strong then get weak. Try this day trade strategy to try to take advantage of the trend. Sell December wheat at the 930 central time opening everyday then put in a buy stop 7 cents above your entry with a 15 cent profit objective. Don't be afraid to take a quick profit if you get it. |
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| Japan seems to be caught between a rock and a hard place. The US slowdown and rising oil prices are taking its toll on the Japanese economy. The strengthen dollar should put further pressure on the Yen. The Yen has had a great run but we feel the yen could fall further. Sell June Yen at 9700 stop 9750. | |
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| Coffee has fallen hard from its highs but it looks like it is breaking out up after a long sideways pattern. Weather will be the key as the some coffee growing areas are headed into winter. It looks as if coffee is putting in a weather premium. July Coffee should target 15400 on the upside. Look to buy July coffee at 13600 stop 13000. | |
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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.