Energies
Resumed strength in energies came unexpectedly this week as news of damaged rigs flood in from the Rita?s wrath in the Gulf.  Take this as a last chance value price to get short the energy complex.  This is the best setup for a fall that I have seen in energies this year.  Sell call premium and buy put spreads.  Natural gas $20 calls still paying out almost $1,500 a pop!

Financials
The S&P failed to breakdown this week as strength came on positive comments from Greenspan and despite a bounce in energy prices.  Critical resistance between 1245 and 1255 exists and I highly recommend a short play below 1245 with stops at 1256.  Bonds offered more choppy action and appear ready to collapse below critical support at 114 and 113-11.  The dollar is right in the anticipated mid-range for the rest of the year and I suspect we will see choppy action over the next couple of weeks although all eyes will be on the employment report next Friday.  The Canadian is showing increasing strength amid a potential fallout in crude oil and fundamentally must be sold at these prices.

Grains
A strong grain stocks report this morning gave birth to an impressive rally across the grain complex ? especially wheat.  Additionally almost all the grains held most of the move today and closed in the upper 50% of today?s gains.  Monday is a critical day for rough rice and needs to test the highs of yesterday to hold upward momentum.  I continue to recommend buying grains across the spectrum.

Meats
Cattle continues to press higher on substantial gains in the underlying cash market.  Hogs have also found significant support, but lack volume in this recent strength and appear ready for failure.

Metals
Gold prices spiked and began to retrace heading into the weekend.  I remain steadfast in the near term retracement of gold and silver prices and see tremendous value in the Dec. 440, 450 and 460 puts.  Copper is sell, along with platinum.  Palladium remains a value buy.

Softs
Coffee remained choppy and I continue to recommend buying long term bull call spreads as I suspect net results of supply problems in New Orleans will lead to another run at 110 resistance.  Cocoa is quite choppy and remains a buy at these prices.  Cotton got some nice support but this market remains doomed for failure.  I would be short with a stop above 5550.  OJ is a screaming buy and already broke out.  Sugar is ready for another setback and I am a put buyer at these prices ? or at the very least a long strangle player.