Energies
Continued volatility to nowhere in energies this week as the energy inventory hits the market with a positive surprise.  I continue to recommend selling calls on bounces or short strangling the market outside of 40 and 51. 

Financials
Stocks surged through critical resistance, and in general the whole financial sector made me feel like an amateur all week.  The S&P is through much of the sell zone and unless we get a quick end of day reversal today or significant reversal on Monday this may be a bull for a little while.  The bond market finally broke down but failed to hold the follow through today, leaving me as a clueless bear heading into next week.  The dollar broke through 8485 without the fight I expected and then sailed back below.  The market has almost too many bullish fundamental things going for it.  For one, the G-7 got everyone thinking that whether Snow and Bush want a strong dollar or not they won't let it retrace too far.  Second, Greenspan says last Friday that they accomplished their goals on the dollar (hint, hint), and then we get a paper thin budget proposal suggest the account deficit everyone is so bearish the dollar because of, is now on the road to improvement.  Overall the dollar should continue the uptrend, and I recommend taking the dip, and any further dip next week as a solid value buy for a run at 88.  The Canadian is a sell, and yen should fall hard if the dollar makes new highs.

Grains
Beans surged on good news on Wednesday's crop production and WASDE reports.  Wheat and corn are trailing but overall the grain complex has turned bullish.  Beans need to get back above 550 to get some real momentum.
 

Meats
Cattle prices look ready to tumble and the bear train has left the station.  Jump on this bandwagon now before its too late.  I have been riding this thing during a flat and choppy few months, and the breakout is finally right around the corner!  Stay short hogs and bellies for the next few weeks.

Metals
Gold and silver spiked up on the hint of the dollar failure, but should see selling pressure as the dollar gets back to the bull run.  Sell silver calls on the premium volatility spike from the last two days.  Copper is not following through like I had hoped, but a dollar rally should get it back on track.

Softs
Coffee continued to experience strong rallies all week on weaker opening prices, and an option expiration rally to new highs puts us in a critical few day period where the market needs to pick up additional volatility momentum and get above 120 to keep the run going.  OJ also reversed several days of weaker openings to finish strong, ending the week with a very benign yet bullish formation.  Expect higher prices.  Cocoa is in a mid range and avoid it here.  Cotton is a sell despite Thursday's run.  Sugar is a sell until it breaks through 950.  Lumber's limit down gets the trigger finger quite itchy.

James Mound, owner of JMTG Brokerage LLC, MoundReport.com and author of the book 7 Secrets, writes the Weekend Commodities Review Newsletter. Receive your free weekly subscription to the Weekend Review by e-mail. Click here