Fast Break: The Week Ahead

Week of October 6, 2008

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5 Hot Picks by Lee Gaus of EFG Group
Lee GausLee 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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Having committed to authoring this weeks article reminds me of what Oliver Hardy said, "Well Stanley it is a fine mess you got us into this time". No matter what I look at we will be either selling into markets that have been slapped silly or buying like silly bottom pickers. So you should be aware of the increased risks these markets and the following ideas carry.
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Gold
Sell December Gold around $870.00 look at a stop around a close above $900.00.
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US Dollar
Sell December Dollar around 8250, with a stop loss at 8330.
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Corn/Wheat Spread
Buy Dec Corn/Sell Dec Wheat on a spread around $2.15 premium sell side Wheat, with a stop loss on a Thursday close above $2.84.
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Corn/Soybean Spread
Buy Dec Corn/Sell Nov Soybeans - $6.20 premium to Nov Soybeans, with a stop loss on a Thursday close above $7.00.
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Corn Spread
Buy July 09 Corn/Sell Dec 08 Corn at around 30 cents premium to the July, with a stop loss on a Thursday close below 26.

The Delicate Art of Spreading

Markets and Elections Report
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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.

Do markets behave differently in election years?
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S&P 500/Nasdaq/Dow
At the time of writing the market remains in its funk. As strange as this may sound, the more we drop the closer to the bottom we get. Be watchful for wicked volatility, until the buyers' strike abates and the credit markets free up.
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Crude Oil
We are in a full-scale bear market, and I expect prices to work lower. My downside objective is around $70 by Thanksgiving.
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Coffee
The market is getting buried, but becoming more and more oversold, we should be ready to see some sort of bounce coming in due course. But for now, the trend is your friend, and keep bullish ideas on the sidelines until it quits sinking. 
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Cocoa
Cocoa is continuing lower and I am looking for this direction to continue for some time. Text
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Eurocurrency
Up, up, and away it went, for years. Now its balloon is deflating rapidly. While some studies are oversold, I expect continued weakness to prevail here for the rest of the year.Text
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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.