We have a number of shorts on commodities, thinking a setback is due. A failed rally... say it is not so! Crude looks to close higher on the day but below $82 and $1 off its high. We remain convinced a 5-7% correction is right around the corner. Forget the fundamentals and technicals; throw it all out the window and just recognize that even in a bull market, it is healthy to get corrections. In the last 5 weeks Crude has moved almost 19% higher without any significant correction; it is time.

Buying is starting to emerge in natural gas. We have been early to this trade but have held our guns thinking a short squeeze could lift April futures back over $5 in a hurry. Clients are long April futures and June $5/5.50 call spreads.

We’ve all gotta eat, right? If you’re feeling especially hungry and looking for an investment with some promise, agriculture exchange traded funds could be just the ticket.

Crop and trade forecasts issued by the U.S. Agriculture Department look promising, which has led many to expect a slow and steady recovery in the agricultural sector, reports Angie Pointer for The Wall Street Journal.

The stock market is up about 65% since the 3/9/09 low, but oil has actually outperformed stocks over this time period with a gain of 72.64%. Below we highlight the performance of ten major commodities over the last year. As shown, copper is up the most with a gain of 108%, while orange juice ranks second with a gain of 101%. Of the three main precious metals, platinum is up the most at 50%, followed by silver at +33.73%, and then gold at +22.16%. Even natural gas is up since the March 9th, 2009 low with a gain of 16%. Wheat and corn are the only commodities shown that are down over the last year. Corn is down 11%, while wheat is down 18.27%.

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