Freeport McMoRan (FCX) closed up 5.1% to $54.96. Copper prices were up 2.84%, according to Bloomberg, on expectations demand will outpace supply. April and May 55 calls are active. Overall option implied volatility of 42 is near its 26-week average of 43, according to Track Data. Active options volume suggests a probability for larger standard deviation movement.

iShares Silver Trust (SLV) closed up 2.6% to $36.46. as silver rallied 2.4% to $37.17 according to Bloomberg. April 37 and 40 calls are active, suggesting hedging for price movement.

Update is by Stock Specialist Paul Foster of theflyonthewall.com

iShares Silver Trust (SLV) is recently up 48 cents to $35.17. Silver futures closed up 2.27% to $36.13, according to Bloomberg. March put option implied volatility is at 41, above a level of 37 from last week, April is at 41; above its 26-week average of 35, according to Track Data, suggesting large price movement.

United Technologies (UTX) overall option implied volatility of 21 is near its 26-week average of 22, according to Track Data, suggesting non-directional movement into its analysts and portfolio managers meeting on March 10.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

After a torrid year, the commodities markets showed some weakness is January. For example, gold fell by about 6%.

So is this a correction or finally a bear market?

Well, legendary investor, Jim Rogers, still thinks that commodities are the best place for your investment dollars (according to an interview on CNBC). No doubt, he has lots of credibility. When others snickered, Rogers started to invest in commodities in the late 1990s. He even wrote a book on the topic.

This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"Gold and silver were top performers in 2010. In fact, they've been top performers over the past eight to 10 years. We believe this will continue in 2011," says resource expert Mary Anne and Pamela Aden.

The co-editors of The Aden Forecast explains, "As the year was drawing to a close, gold hit an all time record high and silver reached a 30 year high. It was super bullish action. And it's not over yet.

Silver futures are recently trading near 30-year highs. iShares Silver Trust (SLV) December 31 and January 35 calls are active on overall call option volume of 180K,(73K puts). Option implied volatility of 43 is above its 26-week average of 35, according to Track Data, suggesting traders are pricing in large movement.

Schlumberger (SLB) volatility has decreased as shares have trended to 27-month highs. Crude oil futures are recently up 0.59% to $88.31, according to Bloomberg. Overall option implied volatility of 32 is below its 26-week average of 35, according to Track Data, suggesting decreasing price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

A large scale sell-off materialized in the silver market in mid-November after the CME Group (CME) raised silver margins. The iShares Silver Trust ETF (SLV) fell from over $27 to under $25 in a matter of days on very heavy volume. It looked like a top had been put in after a heady run in the precious metal.

The SLV, however, has now retraced that move despite the fact that the U.S. dollar has been climbing on a near daily basis. A stronger dollar should be putting a cap on the silver market, and that is not happening. This is a very bullish signal that the price of silver is going to continue to climb as we head into 2011. Look to get long the iShares Silver Trust ETF in the coming days.

Tuesday was another down day for the stock market, with the Dow losing almost 180 points and the S&P falling nearly 20. Right now, this appears like a much needed and long overdue correction. No need to panic. In fact, if the U.S. economy continues to improve, the next few days could present great buying opportunities in the commodity markets.

This is because the Federal Reserve is determined to make sure that the world is awash in liquidity going forward. The sheer scope and size of these liquidity injections have an awful lot of investors concerned about the long-term stability of fiat currencies, as well as a number of sovereign bond markets. As this uncertainty continues to manifest itself, hard assets may see more substantial price increases.

Investors will recall the massive rally in the euro which began at the beginning of June when bearish sentiment reached overwhelming levels. Could a similar pattern take place in the U.S. Dollar? If it does, investors who go long the dollar at these levels will be richly rewarded for taking a contrarian stand on the greenback.

The simplest instrument to use in order to gain exposure to a potential dollar rally is likely the PowerShares DB US Dollar Index Bullish ETF (UUP), which tracks the performance of the greenback versus a basket of foreign currencies. The UUP gained 1.70% on Tuesday, potentially signaling a trend reversal. Investors could also consider buying call options on the ETF in order to leverage their upside.

"Gold surged to a record high; and it's not just gold; silver, the other precious metals, and the resource currencies have all been swept up in the bubbling rise," note resource sector specialists Mary Anne and Pamela Aden.

The sisters and co-editors of The Aden Forecast explains, "The gold price is now very strong in a renewed leg up in the bull market by staying above $1240.

"Gold's next target is the $1300-$1350 level. Silver is impressive; its jump up in the last three weeks may be the start of a super rise.

"Gold, silver and the metals group are coming down from their January highs, on the eve of gold's nine year bull market run. Considering the gold price has had nine consitent yearly gains, and it's still above $1,000 is a feat in itself," say resource specialists Pamela and Mary Anne Aden.

In their The Aden Forecast, they explain, "Gold's bull market is solid, a new phase has begun and it's currently declining in a sharp, yet normal downward correction. Corrections tend to cause fear. And considering the volatility we've seen in recent years, the fear level rises fast.

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"2010 will be the year that silver shines," says metals and mining specialist Gene Arensberg.

In his Got Gold Report, a specialty service from The Gold Newsletter, he says, "We believe that the metal-backed exchange traded fund iShares Silver Trust (SLV) is a safe and convenient way for most investors to gain exposure to the small, but growing-in-popularity silver market."

With gold and silver prices testing new highs, we turn to several leading resource experts -- Mary Anne and Pamela Aden, Mark Skousen and Larry Edelson -- for their favorite plays in the sector.

In The Aden Forecast, the Aden sisters explain, "Gold and silver recently moved well into record high territory, and it looks like they are poised to head even higher.

"Most impressive, gold's leading indicator still has room to rise further before it reaches the high area. This tells us that gold's current C rise is very strong and it's now likely headed to our next target level near $1200. Meanwhile, December gold will remain super strong above $1,020.

"Silver may become the next commodity China runs up in price, just as it's done with oil, copper and uranium," exp,ains Peter Krauthis.

Here, the 20-year gold market veteran -- and newest member of The Money Map Reporter team -- looks at the outlook for silver, and the best way to invest in the metal: iShares Silver Trust (NYSE: SLV).

"After 50 years of forbidding precious metals ownership, China's government is now taking the opposite path -- encouraging its citizens to invest in silver. Chinese investors can now buy silver bullion in 500 gram, 1, 2, and 5 kilo bars.

"Gold and silver have taken the limelight," says Mary Anne and Pamela Aden, adding "Gold looks ready for take off and silver is poised to outperform gold."

In addition, Doug Fabian is a fan of silver. In Making Money, he suggests, "When inflation threatens, silver offers a safe haven; even when inflation worries subside, silver still retains appeal due to its many uses."

We begin with the Adens; in their The Aden Forecast, they explain, "Technically, gold's 'C rise' is off and running and the triangle it's formed has clearly broken to the upside, with gold recently closing at a three month high today.

Mary Anne and Pamela Aden are among the advisory world's top authorities on metals and resources.

In a recent Q&A session, the editors of The Aden Forecast answer the most common questions that they are asked by readers as to the current state and future outlook for the precious metals markets.

In addition, the sisters answer what they say is the most frequent question they receive: "What is the best way to buy gold." Here, they offer a review of five strategies for investing in gold, including their top picks among stocks, closed-end funds and ETFs.