Full Docket 10/29/10

Next week could be a game changer…four Central bank meetings, China's Mfg. PMI, mid-term elections and two unemployment reports. Fasten your seat belt! Look at a daily chart of December Crude; prices remained within the ascending triangle all this week. Before we reach the apex next week we expect a break lower to $77/78. On the week prices will finish virtually unchanged. Different story in natural gas as prices are above the 20 day MA for the first time in months and 15% off their lows from Monday. Our suggestion at this time is longs in December or January futures trailing stops or bull call spreads. On the December contract we could see 50-70 cents upside from here in the coming weeks. Indices remain range bound with the Dow H/L this week a 230 point range and the S&P trading range just over 25 points. It will take a trade below the 20 day MA for clients to add to their small bearish ES put positions. If and when we should see prices back off 5-8%. Cocoa closes down again for the fourth consecutive session but was unable to bust the 50 day MA. We expect that next week as clients should be able to work out of their bearish plays at a profit…stay tuned. Outside of cocoa all the other softs were higher; sugar 1.43%, cotton 2.94%, OJ 3.45%, coffee 3.48% and lumber was higher by the $10 limit. On signs of weakness in the coming week we will be looking to establish bearish plays in coffee, sugar and cotton with clients…stay tuned. Traders are advised to exit their bearish plays in Treasuries today; some at a loss and some at a profit depending on your positioning. We wish not to have exposure in 30-yr bonds or 10-yr notes into the hectic schedule next week. Aggressive traders could gain light exposure in February or April 11′ live cattle futures with tight stops under the 20 day MA's. We've yet to make a move with our clients. With February lean hogs posting a new low we would hold off buying until signs of an interim bottom. We could see an additional 2-3% depreciation from today's close. With today's action we may admit we're wrong and have to reverse and get clients long gold and silver. The 20 day MA in December silver held all week…very impressive. Stay tuned but on more strength clients will be advised to scale into longs in futures and purchase bull call spreads in most likely April or June gold and May or July silver. Aggressive clients have started to scale into long in 11′ corn. We continue to feel Ag traders should have some bullish exposure in corn or soybeans ahead of the 11/9 USDA report. Disappointing action in the US dollar the last two days with prices back under the 20 day MA. All in all on the week prices were flat. Next week will be pivotal in determining the direction from here. Risk Disclosure: The risk of loss in trading commodity futures and options can be substantial. Past performance is no guarantee of future trading results. MB Wealth Corp. is not responsible and does not endorse anything outside of the content of this article authored by Matthew Bradbard; President of MB Wealth. Benzinga Recommends that you take a look at the Barclays Global X Lithium ETF LIT. The LIT is an ETF that tracks lithium. The Global X Lithium ETF was down 0.43% in today's session.