Due to the upcoming Labor Day Holiday Weekend there will be no Weekend Review next week. Please have a happy and safe holiday weekend!

Energies

Crude oil's end of the week rebound should be short lived and ultimately seen as a mild bump on the road to fresh near term lows. Target $64.50 in the near term, confirmed by a break below 71.24 on the Oct. contract this week. Heating oil and rbob both appear ready to collapse a solid 15% in coming weeks if a Gulf hurricane does not occur. The forecast was for an active season and the bottom line that is not coming to fruition, so all that excess premium is going to evaporate and shorts are going to come back into the market with confidence. Natural gas is ugly and this is a wash out, offering good long term call buying opportunities on the way down.

Financials

Stocks appear stuck in a relative mid-range but this is likely just the calm before another storm. Look for put spread buying opportunities on bounce days. Target shorts between current levels and 1084 on the S&P. Bonds should selloff during a week of calm heading into the employment report on Friday. The Friday report could be epic as the buildup to the employment outlook, recent surprises and shocking prior month revisions all setup massive volatility for the stock market, bonds and currencies. The kicker is the holiday weekend it falls on, a major trader vacation weekend that could cause a big Friday and Tuesday reaction in the financial sector. Until then I expect bond prices to retrace to 130 or so. The dollar remains bullish in the near term, pressuring the euro and pound in the process. The Canadian dollar might catch a bounce here, and if it does I would look to short at 97. The Aussie recovered well after the election concerns of last weekend and I suspect there is bullish momentum that could push the market to 9150, at which point I would recommend shorting it. The Bank of Japan eased monetary policy this evening in an effort to limit the yen's runaway move agains the dollar. This is all part of the show as they have little choice but to intervene as Japan is an export driven economy. I fully anticipate that Japan will undergo major economic changes over the next two years and a strong yen will be the catalyst. If they continue to try and ntervene it will net out to be bullish because the BOJ will show their inability to sustain control over this runaway currency, and if they are just 'talking the market down' it will comeback with vengeance - either way I recommend buying the dip as the yen remains bullish, offering a quick recovery from the Friday pullback. This is likely the last real pullback before a short covering rally ensues that could be historic. I continue to stand by my forecast that:

The Japanese Yen futures will hit 140 before 80 or I will quit writing the Weekend Commodities Review.forever.

Grains

After a careful technical review of the grain sector this weekend I believe all eyes will be on wheat as a leading indicator to the grain trend. This market is offering a near perfect pennant consolidation off the post Russian wheat ban highs, and looks bullish on a technical level. My gut says don't believe it for a second! Let the market fake breakout this week and sell into it with puts. The grain market is setting up an impressive head fake rally this week that screams put buying opportunity in beans, wheat and especially corn. Rice remains the standout long term buy, but overall that market will be trapped inside a grain selloff. A fake out rally into a big selloff may not be what you want to hear, but I strive to never hold back my opinion and to always call it like I see it - right or wrong. In this case I have some specific ways to play this forecast and subscribers to my Mound Trade Signals service will get a trade recommendation this week on this prediction.

Meats

Cattle has likely seen a turning point as the overbought market conditions and skewed cash prices have turned bearish on some hedgers selling to lock in some seriously overpriced meat. Hogs also showed signs of a meltdown ahead and the meat sector as a whole is strong sell.

Metals

Timing in metals has unfortunately not been my strong suit in recent years, and last week was no exception. The setup remains, however, for a strong price decline in silver and gold with significant volatility expected in both markets heading into and following Friday's jobs data. Copper is testing some critical resistance levels and a short futures play is recommended with a stop at 342.

Softs

Coffee hit my 170 target - in a hurry - and supported out shortly thereafter. The ensuing rally leaves Monday as a critical momentum indicator day. The market must close above Friday's high to sustain bullish momentum, after which the sky's the limit. Cocoa broke through critical support and represents a strong short with puts or futures with stops above 2820. Cotton set a strong reversal pattern on Friday with the highs from Friday being a perfect area for stop placement on a short futures. Expect a mild retracement with a buying opportunity near 83. OJ is setting up an impressive failure on a break below 133, although this market is notorious for a stop triggering technical failure that has no follow through, so look for a break to 133 but wait one more day for a fresh low closing price to confirm the failure. Sugar is a sell with puts as volatility is picking up steam. Lumber remains a buy.

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.