This week will be calmer ahead of Thursday's FOMC meeting. All eyes will be on Mr. Bernanke and company later this week. We do not expect the Fed. to do anything to rates but we are all waiting to see how they phrase their statement. That phrasing will set the tone for the next 6 weeks.

Energy Complex (NYMEX)
Crude Oil

Crude oil tested the $70 level last week and failed to push through. We see this market pulling back in the near term and testing support levels below $66 after the 4th of July. Hurricane season still looms large over this market but most years the bulk of hurricane activity is in late August and September so look for a lack of short term hurricane threats to contribute to the market pulling back in the weeks ahead.

Equities
SP500, DJIA, NASDAQ

Stocks pulled back after attempting to rally to new highs. Near term we are likely to see range bound trading until next week. On Thursday this week we have another FOMC meeting. Anticipation of this meeting should keep most markets from staging any major directional moves ahead of the Fed. We expect the Fed. to do nothing to interest rates. Just like the last meeting, we are mainly waiting to hear the verbiage that is used in their statement.

Financials
U.S Bonds

Bonds too will likely stay range bound until Thursday's FOMC announcement at 2:15pm EST. Our bias is to see bonds rally after the meeting and we are targeting a move back up to 108 by sometime next week.

Metals
Gold, Silver, Copper

Gold was not able to maintain last weeks slight bullish trend. We see this market falling back to test support at 650. If gold can hold 650, which we believe it can, then we should see a bounce sometime in early July that gets a real rally started that should finally carry us back up to $700. Silver too fell back and this market needs to hold support at 12.75 in the near term. Frankly we see Silver being somewhat range bound in the near term trading between 12.50 and 13.50 for the next couple of weeks. Copper hit our stop early this morning and we are now flat after taking a 10 point gain. Longer term we like the long side of this market and will be looking this week for our next long entry point.

Grain Complex
Corn, Soybeans, Wheat

Grains had an extremely volatile week last week and frankly we see this increased volatility becoming the norm for the rest of the summer. Wheat is building a bull flag but we see wheat possibly pulling back below 5.75 this week. We are targeting a move back to 5.50. Soybeans really broke down and the remainder of our long position was stopped out at 8.20. We see beans chopping slightly lower this week with strong support coming in around the 7.60 area. Corn fell right back into its range after a very brief attempt to breakout that we mentioned we expected to fail last week. So much corn has been planted this year that we simply do not see this market as having any real upside. We continue to spread long wheat or beans against short corn.

Softs (NYBOT)
O.J, Cocoa, Coffee, Sugar, & Cotton

OJ did hit our support level at 1.25 last week and near term we see a bounce coming. We expect the market to build a new trading range between 1.20 and 1.35 over the next week. Cocoa is trying to get a rally going but we are not yet convinced that this market is ready to shoot for the moon. Be patient and wait for a solid close above 2000 before looking at the long side. We continue to see this market has having big upside potential later this summer. Coffee should hold support above 110. We are advising clients to buy the September 115 -125 cal spread and hold for the next few weeks. Sugar did prove to be a head fake and we see this market falling back below 8.50 this week. Cotton looks as if it has stalled. We see this market pulling back to 53 in the next few weeks.

Meats
Lean Hogs, Live/Feeder Cattle, Bellies

Live cattle did turn back down last week as we expected but has till not hit our target. We are still targeting 88 in live cattle by the 4th of July. Feeder cattle bounced, and in doing so has formed a bear flag. We continue to target 102.50 as a downside objective for the next two weeks. Stopped out or longs and we are now flat looking for other opportunities elsewhere. Pork bellies did breakdown and push through our 95 target. We see this market continuing lower this week with a target of 90.

Derek Frey is Head Trader at Odom & Frey Futures & Options.

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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.