Fast Break for Traders: The Week Ahead

Week of February 9, 2009

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5 Hot Picks by Sterling Smith of FuturesOne

Sterling Smith is developer and publisher of the Strategic Traders Index, and a 17-year market veteran. Registered as a CTA he is often quoted by the Wall Street Journal, Down Jones News, Bloomberg, Reuters, and has been a frequent guest of WFLD Fox News Chicago. Sterling works with clients of all sizes to help improve their trading.

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S&P 500/Nasdaq

It looks to me that the bottoming process is underway, so I am looking for a better performance from both of these this week with the NASDAQ being the leader.

Coffee

Coffee, which I have longer-term favorable view of, may be a bit stronger performer this week. I am not looking for a huge move, but we can finish the week better than we started.

Sugar

Sugar looks sweet (now that is an old and bad joke), but sugar seems to be breaking out and I think sugar can be a star this week.

Gold

The bulls seem to be growing weary of this market's inability to really get going, we are not starting out well, so a correction, and possibly a large one seems more likely than not this week.

Bonds/Notes

Bonds/Notes have been slumping steadily since mid January and I really don't see much stopping them from testing the 123 area on the bonds and the 120 area on the notes.

5 Hot Picks by Phil Flynn of Alaron

Phil Flynn 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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Gold

All the gold in California is sitting in a bank in Beverly Hills in somebody else's name but the bank might be in trouble. Systemic risk is back and the talk of millions and millions in stimulus has the inflation hawks hawking gold! Please wait for a pullback before you buy! Wait for a pullback to 870.

Oil

Crude oil bounces higher on talk of economic stimulus. Now if we get another trillion dollars of stimulus we might see oil go to what? Maybe fifty? Come on! Sell Rallies!! OPEC is taking cuts so I guess they are anti-stimulus.

Bonds

Bonds are beginning to bubble. The Fed tried to drive yields lower by threatening to buy bonds back, but talk is cheap and now the long end yields are not. We feel unless the fed steps in, the bonds are going to get crushed. Sell rallies! Call for specifics!

Corn

Hear comes that rainy day feeling again, but not in Argentina. Droughts in Argentina and Brazil have supported the grain complex. Beans have soared but corn could face pressure as the carryover in this weeks report should rise! Sell corn on rallies!

Copper

Copper has been a major victim of the credit crisis. Industrial metals have taken it on the chin as the world economy contracts. Still talk of China buying copper for a special reserve has the bulls driving this market higher. Buy March copper around 15500 looking for a move towards 175! Nice chart formation.

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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.