I think Energies and Metals have a chance to turn up here.

I currently don’t have the asset base to diversify on a large scale.  I would like to get long Aussie, Kiwi, Euro, and Swissie right here if I could, but I choose not to overextend myself.

The grain complex is also looking good with Corn, Soybeans, Soy Oil, and Soy Meal.  Minneapolis Wheat looks the strongest out of the wheat complex.

In the metal complex, Palladium still looks strong.

RBOB Gasoline has the best setup in energies.

I’m already long Malaysian and Indian stocks, as well as Gold and Malaysian Palm Oil.

Long:

• Metals: Gold.

Long:

• Softs: Cotton.

Long:

• FX: Japanese Yen.

The G-20 meeting this weekend announced that they were going to stimulate to kingdom come.  The communique ironically mentioned that the group will work to address excessive commodity price volatility and to achieve high stable growth which will require orderly rebalancing of global demand.

In the short-term, this might mean a shift away from stimulative growth in China, Canada, and Australia.  Also, any fast runups in commodities might be met with heavy selling or even government intervention.  This will create even more volatility in the long-term.

Short:

• Grains: Soybeans.

Long:

• Softs: Cocoa, Coffee, Sugar.

Flat.

Long:

• Grains: Corn, Soybean Oil, Kansas City Wheat.

Short:

• Financials: 5-Year Notes, 30-Year US Treasuries.