Financials 
Stocks: There is a famous saying in the stock market that says: â�,��"Sell in May and go awayâ�,�. These old adages get thrown around by economists and pseudo economists quite a bit but few traders actually take them seriously anymore. I argue that these sayings have more to them than a snappy rhyme. These saying have come about based on many years of experience. This May does not look any different from past ones and therefore I would expect this â�,�˜truismâ�,� to play itself out this May as usual. So Fridayâ�,��"�s â�,��"breakoutâ�,� on the S&P 500, which will likely prove to be a head fake, is not expected to follow through and aggressive traders should consider entering the short side early this week.

Bonds: Bonds continued to struggle with support at the 106 handle this past week. Fridayâ�,��"�s breakout if it follows through could be the beginning of a medium term bounce. With all the waves that Mr. Bernanke sent through this market in the last week it is a wonder bonds did not fall even more. Mr. Bernanke has only had one FOMC meeting under his belt and already his credibility is being called into question. Perception is everything in economics and he is giving all of us the impression that he talks out of both sides of his mouth. Which is really just a nice way to say he is a liar. So he is not off to a good start to say the least. Near term if he does not continue the double talk, I think we will begin to see a solid rally in bonds this week. If however, he continues to be hawkish then lookout below!

Energies 
Crude oil futures prices slipped this week as the latest Department Of Energy (DOE) reports reflected a build in the unleaded inventories for the first time in nine weeks. This surprised most analysts who were expecting further drawdowns because of rising demand. However, demand was flat and imports were way up so the refineries were off the hook this week and continued to try to complete their seasonal turnarounds in time for the summer driving season ahead.

The recent pullback for crude oil futures prices is exactly what Iâ�,��"�ve been calling for over the past couple of weeks. Primarily because this market rarely breaks to new highs and holds for very long before heading lower. Crude oil needs to gather steam once more before making another the push to the upside and the recent inventory numbers seem to be the perfect excuse to do just that.

Donâ�,��"�t think for a second that I am discounting the latest and greatest from the few rogue producers out there that seem to be hell bent on creating panic and wild speculation in the market place. There is no question that the primary motivator behind some of the conflicts we are seeing right now from Iran, Venezuela and Nigeria etc. is greed. That doesnâ�,��"�t mean that these problems arenâ�,��"�t real and that they canâ�,��"�t have a real effect on crude oil prices if some of these situations were to escalate further. These countries are producers and that alone puts them at odds with us as consumers. There is and old saying in the world of salesmen that says â�,��"The best price for me, is the highest price youâ�,��"�ll pay; the best price for you is the lowest price Iâ�,��"�ll sell it for, letâ�,��"�s meet somewhere in the middleâ�,�. Right now I think theyâ�,��"�re finding out what their best price is and until demand is notably affected by rising crude oil futures prices then they will surely go higher.

While crude oil futures prices have slipped somewhat over the past week it is important to note that they are still in a very bullish uptrend and until we see some fundamentals or technicals that point the other direction I remain a long term bull with a short term pullback. We are currently holding a bear put ladder spread in crude that achieves max profits between $67.00 and $66.00.

Metals 
Metals continue to push higher. With the Dollar still very much in a free fall metals have little to do but rally. I have been expecting a bounce in the dollar for about the last 6 trading days and we have still not seen any significant bounce. I still expect a bounce in the dollar and therefore a pullback in metals. I think we will see 650 in gold before we see 700. But I do expect to see 700 at least sometime later this year. Overall I would be positioning for the pullback so that means tighten up stops on longs and for aggressive traders you could consider a stop and reverse order. Shorts should not try to stand in front of this run away train but rather buy, or better yet spread, puts.

Grains 
Grains had an overall very strong week. Wheat was the leader, but we did fall short of break out of resistance at 380. I would expect to see this level broken through early this week. Corn managed to completely fill the gap in the daily chart that has bee there since mid March. Now that the gap is filled the path of least resistance is up. The soybean complex continues to be strong overall. I am looking for this market to become the leader in the near term if we are going to follow through at all on the gains we saw this past week. Last week I mentioned that I believe we are entering the â�,��"second phaseâ�,� of the commodity boom we are now in. Again in that phase we normally see the early leaders (energy and metals) begin to back off and consolidate a bit while the rest of the complex begins to â�,��"catch upâ�,�. I continue to expect grains to be the next bull within the CRB index (CRB index is an index of the most heavily traded and used commodities).

Softs 
Oj had a very strong rally and my shorts we stopped out at breakeven. OJ has little if any technical points of resistance in the way until we get close to 175. If we manage to rally that far in the first place, look for this point to be rather formidable resistance. Cocoa continues to consolidate around the 1500 level and I am getting more and more bullish this market by the week. Get long or spread calls if you havenâ�,��"�t already. Coffee too continues to consolidate, and here to I am getting more bullish by the minute. Spreading calls in coffee is really the only affordable way to trade the long side of coffee â�,��"safelyâ�,�. Last week I mentioned that I expect sugar to continue to be range bound for some time, nothing has changed here and we are likely to see a two sided market for most of the coming week. Since are very near the upper end of this range aggressive traders should get short with stops above resistance. Cotton seems to have bottomed but has not yet been able to stage any significant rally. I am not surprised by this, but I do expect more volatility this week than we had last week which should translate into a breakout in one direction or another.

Meats 
The Live Cattle markets continued to consolidate this week as they failed to break to new highs but more importantly support held. I'm still very bullish this market and continue to hold call option spreads.

Lean Hog prices pulled back just as I predicted last week and as demand contiues to look solid here I expect prices to move higher. If the market breaks through 70.00 on the June contract I'm getting long.

Forex Currencies
EUR/USD: Well last week I mentioned that I expected the Euro to begin to pullback. While that proved to be dead wrong I think it was only my timing that was off not the direction. That being said, I continue to expect a pull back to 125 or so this week.

USD/CHF: The swissy has now made an almost perfect triple bottom on the weekly charts and I feel â�,��"safeâ�,� calling for a bounce off of this support level. Look for this market to rally at least 150 pips this week. This is expected to be little more than a dead cat bounce, so use it to get short.

GBP/USD: The move in the cable has been nothing short of amazing. We have moved over 1000 pips in the last three weeks alone. Markets are rarely one way streets so donâ�,��"�t expect this party to last forever. I have been calling for a pullback here to for over a week now and we still have not seen it. Again here the timing was clearly off, but I continue to expect that a pull back is imminent.

USD/JPY: 112.50 was a resistance and support point in the past, and I would not be surprised if that point stops the recent slide in the short term. So here too I am expecting a bounce in the short term to about 114.

AUD/USD: This market has also been on fire partly due to the incredible strength we have seen in energy and metals. Significant resistance lies between 77.50 and 78 so I am expecting a stall and consolidation here this week as well. But of all the currencies out there, the Ausi and the Canadian stand the best chance of weathering any significant Dollar rally we see in the near term.

USD/CAD: This pair continues to push lower. Seems like we may have parity in the US Dollar and Canadian Dollar very soon, which should be huge news but of course goes unreported. We are at historical lows in this pair so we have no real support levels to talk about. Look for this market to have a bounce this week but donâ�,��"�t expect it to follow through.

Matt Odom is the Managing Partner and Energy Analyst and Derek Frey is Head Trader at Odom & Frey Futures & Options.

Risk Disclaimer 
Past performance is not indicative of future results. Trading futures and options is not suitable for everyone. There is a substantial risk of loss in trading futures and options.