Energies
Energies took the big plunge this week as anticipated, and even broke $50 intraday as crude inventories cam in over 3 million barrels higher than the median estimate.  Bottom line is that crude supplies suggest a price more like $25 than $55, but the premium will remain to a varying degree for some time.  Last week I recommended selling puts on $4 dips as well as a continued recommendation to sell calls and any real rally effort.  I would still suggest put selling or short strangling is a workable strategy as the market is not showing signs of instantaneous collapse any time soon.  I remain a long term bear though.

Financials
Sure enough the market failed to follow through on its most recent rally efforts and now the bandwagon has switched back to the bear camp.  Overall, Thursday's plunge left a great technical sell argument, but the market hasn't been able to sustain a significant one sided move in years, so why would they start now?  I remain a cautious bear and mainly I see the market as worthy of ignoring as any market I watch.  Bonds on the other hand catapulted higher on news of the FOMC minutes and the Fed's declining need to raise rates.  This changes very little in my mind and I take this as a great short play near term and long term.  The dollar made multiple efforts to break to new highs but the market remains hesitant ahead of the G-7 meeting.  Overall I remain a defiant dollar bull and have focused on bear put spreads in the Canadian Dollar as recent data suggests the Canadian growth rate will slow.  Also, I am shorting the euro and yen on bounce days like today.

Grains
Grains offered declining volatility and little price action as the week progressed.  The market is in wait and see mode and looks to be a great value buy around these prices.  Use puts as protection in place of stops, however, as the market may slide a bit before a true bottom is discovered. 

Meats
Cattle weakness met a technical support that was a force to be reckoned with this week.  Between 8340-8365 this market just got some serious buyers and held up strong to end the week.  Nevertheless I am still a mortgage the farm bear in cattle for the long term.  Hogs and bellies remain a sell.

Metals
Gold is a tricky son of a gun isn't it?  Yesterday marked the biggest down day in weeks and the market shrugged it off and added almost zero volatility premium to the puts and bounced it mildly today as the dollar faked a breakout.  Don't be fooled.  Once the dollar breaks to a new high you will see a $10 plus down day and serious downside action.  Silver is a bit more volatile but is playing the same game.  Copper made a significant technical break yesterday but I am far from a bear believer yet - wait and see.  Palladium is still a buy with stops around 175.

Softs
OJ looked ugly mid-week but overall the market is a buy and should be at new highs in the coming weeks.  Coffee finally had a real retracement, and looking at 110 as support I highly recommend buying bull call spreads now.  Cocoa volatility remains high but the market needs to test 1450 and then I am a buyer.  Cotton is still a sell.  Sugar is falling apart on news of great Brazilian production, but if July gets back above 831 I am a technical and value buyer with stops below the lows.  Lumber remains a volatile short.

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.