Energies
Pressure in crude came this week as the sell news affect from Dennis combined with diminished concerns about Emily have left the market to focus on supply figures.  The numbers in crude continue to come in below estimates but heating oil data remains bearish compared to supply expectations.  Look for additional selling and a break below 55.90 to confirm the breakdown.  Natural gas calls continue to be a premium collector's dream.

Financials
Stocks remains impressively strong and this bear remains unimpressively out of this market.  A bear turn should occur in the next two weeks and I like getting some puts here, but fail to see the logic of participating in this market instead of the many others that present more obvious trends and better volatility.  Bonds broke but the momentum is a close second to watching paint dry and I would have liked to see a break of 115-26 heading into this weekend.  I remain a bear heading into the Humphrey Hawkins testimony next week and look for Greenspan to get a selloff going in the longer term maturities.  The dollar is volatile and choppy and the gut says we may set new highs but a 87-92 rough trading range through the end of the year makes currencies great short strangles, but that is about it.  I continue to recommend a long one euro/short one yen spread.  The Canadian is down to some serious trend line support around 8150 and I would bail on shorts around 8170 if not at today's closing prices.  It could get bearish in a hurry and I would get short again if we close below 8150. 

Grains
Weather, weather and more weather is story of the grains this summer.  I remain a cautious bull at these prices and recommend ratio call spreads for a credit in beans.  I recommend exiting corn long positions at closing prices today, if only from an overbought perspective.  I think the grains are bullish, but they have been getting ahead of themselves an awful lot this year.  I am scaled down to about a 50% of my long position at these prices.

Meats
Interesting news for cattle after Thursday's close.  It marked a landmark day in which the February Court decision to force a continuation of the ban on Canadian beef imports to the US has been reversed, effective immediately.  This critical news has short and long term bearing on a meat market that is fading quickly.  When the decision came in February, just as the ban was to be lifted, the market was caught off guard and almost laughed the court order off.  However, the order lasted significantly longer than anyone would have suspected at the time and has given Canadian beef exporters the opportunity to bring their standards up to the new import requirements - something that only a small percentage of exporters would have been able to accomplish back in February.  Cattle will be a market to watch for the next several days, and a market to play to the downside for the next several months.  Hogs and bellies remain conservative buys, although my focus would be on hogs.

Metals
Gold faded quickly as the dollar shrugged of early in the week selling pressure.  Gold remains a short as the yen has some downside potential and the euro remains off the lows.  Silver is holding up, but should follow silver and both appear to be good shorts.  Resilient copper is a good short play, but use puts and not futures.  I recommend a short one platinum/long three palladium spread.

Softs
Coffee volatility is heating up and weather will increasingly become the focal point here as we head into August.  I am strangling the market and buying bull call spreads on dips.  Cocoa remains a sell, but use calls as protection.  Cotton is a sell - still.  OJ is all over the map and I long but on with some spare change as this market is not worthy of serious investment at this time.  Lumber is a sell on its way to 250.  Sugar looks to be overbought and losing steam and I recommend October 9 puts for $150 a pop.

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.