Eurodollar
The Eurodollar market closed out the week at 99.265 basis points.  Keep watching for a short side entry to develop.  Last week we released an article titled, EURODOLLARS—the Perfect Storm?, detailing this rare and incredible development.

To view the chart go to: http://futures.tradingcharts.com/chart.php?cbase=ED&market=ED&cterm=69

Click here to view our recently posted Special Report: GASOLINE
It was a great week as prices moved swiftly through resistance at $1.81 made on October 31, 2008. Our price target is $2.39/gallon (12 month 50% value).

»Profits to date at this week’s close of $1.88/gallon equals +$8,820/contract

This trade is progressing and trailing stops placed under recent support should be considered.  The support areas you choose should be based on your individual risk tolerance.

To view the chart go to: http://futures.tradingcharts.com/chart/RB_/99

“Invest in the commodities you use every day.”

ChartSmith monitors markets in the Low (wholesale) Zone for the Buy Low—Sell High profit opportunity and the High (retail) Zone for the Sell High—Buy Low profit opportunity; Cotton, Gasoline, Lumber, and Orange Juice have been on our watchlist for paper trading the low zone this past month and the recent addition of the Eurodollar is being monitored in the high zone. 

Complete details for these and other exciting low risk, high profit trade setups are included in the book, ChartSmith--Forging Your Financial Future.

>>START an INVESTMENT CLUB in your TOWN>>

As described in ChartSmith--Forging Your Financial Future, seasonalities are a secondary consideration when planning an investment in the commodity markets.  Seasonal tendencies occur each year in many of the commodities we love to trade because of natural supply & demand issues.  Even though we consider seasonality to be secondary to our tools and indicators for making trading decisions, being in allignment with these tendencies is often the very thing that can turn a good trade into a great trade. 

This week we're including a portion of an article from our friends over at www.uncommonwisdomdaily.com.  I believe this write-up further illustrates how seasonal tendencies can play a role in the market's movement...


Bullish and Bearish Plays for the 2009 Hurricane Season
by Sean Brodrick

Whether the 2009 hurricane season turns out to be a snoozer or a bruiser, I have four picks for you — two bullish, two bearish — to play this summer's potentially wild weather.

The major hurricane forecasters have made their predictions, and it's for a "moderate" hurricane season. Cooler seas off the coast of Africa and a prediction of a weak El Nino get the credit for the calmer forecast.

That's good news for America's oil and gas industry, which is still recovering from the carnage caused in Energy Alley last year by two hurricanes — Ike and Gustav.

In fact, 5 percent of oil production and 8 percent of natural gas production remains shut in — production outages total 58,000 barrels of oil per day and 590 million cubic feet of gas per day — thanks to last year's stormy weather, according to figures from the U.S. Minerals Management Service (MMS).

Three major undersea pipelines were whacked by hurricanes Ike and Gustav last season. And rough weather this spring has kept work crews from making needed repairs.

Now for more good news

The oil and gas industry's hard work to strengthen platforms and pipelines — including additional mooring lines to secure offshore drilling rigs to the seafloor and rules to raise some facilities higher out of the water — is paying off.

Last summer, hurricanes Gustav and Ike destroyed 60 oil and gas production platforms. That's way down from the more than 100 platforms that were destroyed by Katrina and Rita. Also, last year, only two mobile drilling rigs went adrift, compared to 19 in 2005, according to the MMS.

The Gulf of Mexico accounts for about 25 percent of domestic oil production and 15 percent of natural gas output through about 3,800 offshore production platforms.

And the Gulf is going to get more important, according to the MMS, which says that oil production there could peak in 2013 at almost 1.9 million barrels per day (bpd). Deep-water production should become an increasing share of Gulf production and peak in 2011 at 1.4 million bpd.

Last year's stormy weather spawned 16 named storms, which was higher than the long-term average of about 10 tropical storms and six hurricanes per year in a typical Atlantic hurricane season.

As for this year ...

The National Oceanic and Atmospheric Administration is forecasting nine to 14 named storms this year, with four to seven becoming hurricanes.

Colorado State University's weather team downgraded its outlook for the number of named storms to 12, including six hurricanes.

AccuWeather.com forecasts 13 named storms including eight hurricanes.

Weather Research Center is predicting seven tropical storms this season with up to four of those expected to become hurricanes.

The World Meteorological Organization has its list of hurricane names ready, starting with Ana, Bill, Claudette, Danny, Erika, Fred and Grace. Why do I think Grace will have all the delicacy of a 2,000-pound hippo? 

Now for two pieces of bad news
Forecasts for the number of storms in any given year are notoriously unreliable, though last year, agencies like NOAA were spot-on.
You can find a table of how accurate NOAA's predictions have been by pointing your web browser here: http://tinyurl.com/p8popp.
And the second piece of bad news: It only takes one well-aimed hurricane to make the season a bad one. So don't take the forecast for a "moderate" season as a reason to slack off in your preparedness.
The next hurricane may come barreling right at you or someone you care about. And one well-placed hurricane could also cause major damage to Energy Alley.
So what's the worst that could happen?
A storm surge above 20 feet that could take out up to 30 percent of U.S. refining capacity at one shot. Storm surge is a large dome of water often 50 to 100 miles wide that sweeps across the coastline near where a hurricane makes landfall.