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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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| Gold has had a solid move over the last week, but looks under priced compared to where crude is. I am looking for another good week here and a close above 912 would help add to the momentum, once we get past this morning's correction and stabilize some. | |
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| I think we will probably take out that 140 level this week and overall, I think it is far more likely we will see 147 before we see 127. | |
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| Eurodollars did stage a bit of recovery last week, but I think the overall picture remains weak, and we should look for short term rates to rise some this week, so expect these to drop. | |
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| Despite last week's pullback the market remains weak and sloppy, and do not think we have reached a near term bottom yet. I am going to continue to look to sell rallies and cover on breaks. | |
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Sugar has made a spectacular recovery over the last couple of weeks, but we may be getting a little a head of ourselves here. I am looking for short-term pullback to begin this week, leaving us with a good buying opportunity next week.
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| 5 Hot Picks by Eric Reinholtz of DAW Trading | |
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Eric Reinholtz is a Senior Market Strategist with DAW Trading. Mr. Reinholtz relies heavily on his expertise in charting markets for his exact entry and exit scenarios. Mr. Reinholtz’s focus targets very realistic money-making strategies more so than cryptic buy & sell signals that can get flashy publicity, but have little to do with actual portfolio alignment. He believes a professional way of approaching the markets should emphasize scaling-in during serious purges (ideally after bases are built), and scaling-out gradually into strength (ideally into extended parabolic moves), happily not worrying about "milking" the last percent out of a move
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In the May 5th edition of 'The Week Ahead', I recommended that traders, who were not already, establish short positions in the S&P 500 futures above 1404. Again, traders who are not short should look to enter on any rally attempts to 1333. Rallies this week should be empty and meaningless, unless there is a close below $131.75 in Crude oil futures. If that happens, the market might be able to pick up some momentum and begin its recovery process. Otherwise, the S&P's appear headed for 1280 over the next few weeks. | |
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| Traders can look to get short November OJ as close to 119-120 level as possible. Risk on trade to 125.70. OJ has been a failure in terms commodity investments, down 23% on the year. It looks like year's low at 111.10 would be in jeopardy of holding on next down cycle. | |
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| With the flooding in the Midwest many wonder what will be left of this year's crop in both the meats and grains. This uncertainty has allowed feeders prices to raise along with the rising price of corn. Feeders should be able to withhold any selling pressure. Any move to 114.50 level and traders should look to enter with long positions, risking to 112.10. | |
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| Japan's stock market has been as volatile as crude oil prices this year. After nailing the bottom earlier in 2008, back in March 31st update, I noted that it had appeared the market had topped out. Friday's move confirmed that the spike high on June 6th might have put in the top for the index. While China is already making new 52-week lows, Japan has let their currency deflate and improve exports. But a slowdown for tech should cut into 2008 second half revenues, along with the US is running out of stimulus checks. Traders should enter short as close to 13765 as possible, risking to 14050. | |
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Wheat prices have lost a lot of ground against corn and soybeans during the first half of 2008, but that should work itself out the second half. Corn prices have narrowed to within $1.50 of wheat. This time last year the difference was about $2.30 before wheat started its run. Traders should buy September wheat and sell September corn at a difference of $1.50, risking twenty-five cents on the trade. Ideally this trade will get back to $2.30 again before we exit trade. (This trade is not margined as spread, outright margins due apply.) | |
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