Energies        
A strong retracement this week in energies was almost reversed today as Bush vs. Iran issue heated up a bit.  However, the end of day failure put the market back into sell mode heading into the weekend.  Overall the market is showing a top at the earliest possible time given the recent percentage moves that have occurred after a new near-term high is broken.  While I remain a contrarian bear here, I am not convinced the top is truly in.  Some simple bear put spreads is about all I would commit here.

Financials      
A major reversal day on Thursday put the bulls back in control, but with oil weakness what it was this week I am surprised a new high was not set.  Until the S&P closes above 1325 I am bearish here.  The bond market is choppy despite Bernankeââ,¬â"¢s speech regarding a willingness to stop the hikes on solid economic data.  The technical setup is still bearish but I am long strangles here to play volatility as the market is getting ahead of itself if it sells off any further.  The dollar ended the week right on critical 8570 support and a break and close below that would signal a breakdown below any foreseeable channel that once existed.  This dollar bull can only step aside if that happens as a move to 8050 is possible if this support gives way.  The Canadianââ,¬â"¢s fresh multi-decade highs continue what can only be looked at as a continued long term bull trend.  I remain a contrarian expecting a retracement, but we are so far away from 85 support the retracement would be half over before a technical confirmation would be seen.  So getting ahead of it would mean buying cheap OTM puts and praying your timing is pretty solid.

Grains            
A decent move in beans today offset a fairly dead week in which we saw corn attempt to fill the gap and wheat die a slow death.  Overall I remain a bear in grains between now and the end of May.  If you can buy some beans at 5.50 or lower, wheat around 3.30 and corn around 2.10 I would jump at it, otherwise wait it out. 

Meats            
Cattle broke back down to double bottom support and the bottom line is you can throw your fundamentals out the window ââ,¬â€œ if we close below 72.50 on the June contract then watch the floodgates reopen.  I am near term long and reversing if we close below that mark.  The hog market continues to be resilient and a good bull setup is confirmed on a break and close above 67.80.  I would double my longs and trail my stops to 63.80.

Metals           
The expected consolidation after last weekââ,¬â"¢s devastation in silver ended with a massive spike today.  A technical top at $14 just below lock limit is probably more from weekend profit takers then because the market actually formed resistance there.  The chart looks quite bullish.  Gold too had some serious strength today, mainly due to rising energy prices and political concerns.  Can you believe you can sell a Dec. silver $25 call for almost $2,000?!  You can sell a gold $800 call for October for almost $1,500!  I say sell some deep out of the money calls and use the premium to buy some puts for an OTM synthetic play that would not only give you a hefty credit but probably allow you to buy 2 puts for every short call.  Copper is nearly impossible to play with options, and it is not worth the risk any other way.

Softs               
OJ prices remain steady above 140, but I am still looking for a pullback to 120 or so before jumping long ahead of the hurricane season.  Coffee still looks like a solid buy and I suspect we will see a move to 115 next week and move higher from there (reference the Trade of the Month).  Cotton price supported out a bit after the consumption report, but overall is building some minor consolidation ahead of another hefty failure.  Cocoa is strong and back above 1500, but needs to break some serious resistance to sustain the momentum needed to make a real run here.  If we break through 1550 watch out.  Sugar is holding onto a weak looking trend line support and I continue to recommend a long strangle for July as the market is setting up for a major move.

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.