Energies
Energy markets ended relatively flat after another volatile and choppy week, but ultimately established a bearish pattern that suggests a break to new lows in crude oil next week. Natural gas is showing good signs of a top in this overpriced market and buying puts here is highly recommended.

Financials
False strength in the stock market came this week as it tested critical support at 1205. The failure of the S&P to close anywhere near that price after penetrating it intraday is a solid sign of weakness in the market.  Today?s rally, on strong GDP numbers, would need significant follow through on Monday and a near term close above 1205 to signal any type of reversal.  It is important to note the expanded daily volatility over the past few weeks in a market that has gone nowhere.  This type of action is indicative, especially in a market that has lacked direction for some time, of a major technical price move in the coming weeks.  With the employment report on Friday I foresee an explosive market with the opportunity to establish a powerful intermediate term trend.  Bonds continue to collapse as anticipated and should touch 110 in the coming weeks.  Friday?s employment data will be the straw that broke the camel?s back.  The dollar choppiness is just in line with my expectations for a range bound currency market through the end of ?05 ? we are in the mid-range, but the euro has truly established an impressive support between 11944 and 11975 and if the market breaks that it will likely collapse.  Personally, I see it happening sometime in January.  The Canadian wants to fall, but will wait for a crude break and a technical move below 84 before completely giving way to the major retracement ahead.

Grains
Grains end the week struggling to hold up under strong selling pressure in an otherwise quiet harvest time market.   Overall, corn is at critical front month historical support at 197 and the bean market filled a gap and may push to a lower price before developing support.   Technicals aside, however, the gut says to buy up as many Jan-March bean, wheat and corn calls as you can as the counter seasonal trend in the grains should force a post harvest rally a bit later than anticipated.   The bird issue is still lingering but more a reason to buy on value then sell on fear.

Meats
A major bull reversal in the intraday action came on Thursday, after a week of mild reaction to last Friday?s cattle on feed.   Today?s bullish follow through certainly gives the market momentum to push to new highs despite my long term bearish outlook and expectations for a retracement.   My gut remains a bear but there is no refuting the bull technical action at the moment.   That is not to say I am avoiding a directional view, but rather just acknowledging the obvious.   I remain a buyer of puts. Hogs remain bearish but I recommend avoiding this market until you can short a real bounce and see a major technical breakdown.

Metals
The gold market has followed the volatility of stocks and like wise, has gone nowhere over the past couple of weeks.   The high remains in and the market appears ready to build a consolidation near the highs ahead of its next move (on a technical level this would suggest new highs ahead).   The gut remains a big time bear and I would mortgage the farm (hypothetically speaking) on catching some premium bounce on some put buying (stretch them out to Feb. options despite my gut saying it should happen in the Dec. option time frame ? after all timing is the hardest part).   Silver is showing similar signs and is a good put or credit call play as well.   Copper is a sell, platinum too, and a palladium value buy continues to pay dividends.

Softs
OJ breaks out on pre-Wilma news, again on post Wilma action and now appears to be in full bull mode with a skies the limit type short covering rally here.   I have been long most of the way and the only opportunity I see here is either a high risk futures buy on a dip or selling far out over priced call premium despite my directional views.  Coffee is finding it tougher than many thought to break critical 108-113 resistance and I am not sure it will do it this year.  I remain a buyer of March bull call spreads as I think inevitably this market will make another bull move. Cocoa is choppy but remains a buy.   Cotton is a breaking down and is weak at the knees as it gets set to head back into the 40s.  Sugar is topping but avoid this market on both sides ? we are in relatively uncharted territory here.