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| 5 Hot Picks by Sterling Smith of FuturesOne |
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 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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| While the early activity is mixed, some of this maybe tied trouble with IBM/Sun Micro deal, and this weakness may persist for a bit. However, I am of the opinion that for the week on the whole, we have more upside potential than downside potential. |
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| The bulls are certainly suffering from a case of the "Monday's", getting hit hard. We are sitting right in a key area of support as I write this, so where we close today will be important. Make sure to read my
STI for more details about this market. |
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| Coffee has bullish fundamentals, and I am trying to be bullish here, but until we can see some real follow-through we can expect fits and starts for a while yet. Keep this one on the radar screen, as once it gets going we do have some good upside here. |
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| Crude oil is looking a little tired at the moment, but I don't think this is going to continue as I am looking for buyers to step in around the 50.00 level basis May. |
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| High grade copper rallied to better than $2.00 level on Friday. The funds have a big short position and I think this can be supportive, so I think as the week plays out, we can see prices climb. Keep in mind also that a rally in copper prices is generally viewed as bullish towards the economy in general. |
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| 5 Hot Picks by Derek Gilroy of Trendphonic Futures |
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Derek Gilroy has been a member of the Chicago Board of Trade since 1997 and is a senior trader at Trendphonic Futures. Prior to that, Mr. Gilroy started his career working in the Grain and Financial pits on the trading floor of the Chicago Board of Trade in 1994. From October 1997 until January 2007 Mr. Gilroy functioned as a local trader on the floor of the Exchange trading the 10-year cash basis. Currently Mr. Gilroy serves and President of Trendphonic Futures and Head Trader for their Managed Accounts.
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| With the IBM / Sun Microsystems deal falling through, the S&P are down this morning. Over the past four weeks, we have seen a 20% gain in the indices. With resistance coming into the market as current levels, we are sellers into this rally. We expect to see a pullback due to the current global economic situation. |
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| Bonds broke 127'31 during Friday's trading session and traded down the rest of the day, recovering slightly to close the day at 127'06. The bonds found support on the 49 day moving average which is at 126'22. If the bonds stay below 128'20 and take out that moving average, they should trade back down to the mid 123 handle, which is where the bonds started from before the Fed came out and said they would buy 300 billion in debt.
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| Gold broke below 900 Friday and is currently trading firmly below there. The current four day session sell-off mostly due to optimism that the global economy is bottoming out. Technically speaking, gold still looks weak and we would not be surprised to see gold down below 850. |
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| Beans began a nice 6 day rally on March 16, only to give most of it back and creep back under $9 briefly. Now rallying again, I look for beans to struggle around $10.50 and again around $11. With the most recent crop report there is a lot of conflicting fundamental reports as to the planting estimates as well as exports. Look for these to get settled and beans to pick a direction before the summer. |
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| The oil has had a significant rally since 2/19, trading just below $40 all the way up to $54 and some change. With the information on the build up of reserves, it seems oil will be heading south. But lately it is directly tied to the Dow. As the economy recovers so does the price of oil. Oil will need to trade below $47 to confirm a downward move, which is appearing difficult with the strength of the economy. |
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