The European Union sinks its own battleship with a 30 billion euro dollar bailout plan. Greece will not need to take this money, and if they do it will be out of the ridiculously beneficial interest rate of 5% and not because they actually need it. The simple act of offering the money will allow Greece to get private loans and stabilize the panicked economy. Offering the money at 30%+ off current rates certainly makes greed versus need the focus for Greece politicians to debate. The EU can act proud to support the runt of the EU litter but the reality is that this makes the EU as strong as its weakest link and that spells disaster for this currency. Expect a rally on Monday in the Euro and commodities as a whole.

Opportunity does not exist without risk, and being a contrarian often requires the willingness to fight the trend at the most extreme point of volatility. It is within those moments that traders discover that opportunity.

Precious metals are the focus this week as, after a hiatus from option recommendations in this sector, I am putting out official recommendations in gold and silver this week in my premium service. See the actual recommendations and timing of the entry in Monday's issue of Mound Trade Signals by subscribing here and taking advantage of the new pricing program. The monthly formation suggests a massive bear move before the end of April, setting a fresh monthly low and putting the kibosh on this recent price surge.

Energies

Oil prices can test and break $87, however I do not anticipate that front month crude will penetrate $91 and therefore offers an opportunity to short with puts optimizing favorable downside volatility expansion. Natural gas remains a long play with straight calls or as a long futures against a short crude oil.

Financials

The S&P500 is set to test 1200 Monday, but the euphoria from the EU bailout of Greece will be short-lived. The act of the bailout may be bullish but the fundamental actions behind it are bearish. Bonds will offer a flight to quality bull play on the way down. The dollar will likely give bulls a shot at reentry this week, targeting 79.60-80.40 as the entry zone. The Japanese Yen is a strong buy. The Canadian dollar should see pressure following a weak jobs report. The euro could see sub-130 prices by month end as the sell-the-news affect takes hold of the market.

Grains

Strong oil prices and slightly bullish ending stocks have grains supporting. I recommend shorting soybeans and corn, and buying value with wheat and rice. Rice appears to have set a near term bottom and is a buy on dips with calls or futures.

Meats

An historic breakout bull run in hogs continues, offering little reason to stand in the way of the move at this point. Live cattle is a strong short at current levels with puts being the recommended action.

Softs

Coffee pulled back to the 132 target and is a buy at current levels. Cocoa remains a strong near and intermediate term short. Cotton may look like it turned bearish with a critical technical failure, but wait for it to break 76.88 before getting short because this could be a false sell signal on selling caused by stop penetration. OJ remains bearish with a target of 110. Sugar is a buy with calls with a target to 1900 in the near term.

James Mound is the head analyst for www.MoundReport.com, and author of the commodity book 7 Secrets. For a free email subscription to James Mound's Weekend Commodities Review and Trade of the Month, click here.