The Nemenoff Report - Bonds Higher, S&P's Lower, Silver Higher

Financials: Dec. Bonds are currently 28 higher at 132'11. The long Dec. 10 Yr. Note/ short Dec. Bond spread is currently at 7'26, up from last Friday's 6'29 early in the session after the Employment Report. We have liquidated this spread pretty much at the price the trade was originally put on depending on when you initiated the position after sitting with a loss for a few weeks. Near term support is currently 131'18 and near term resistance 133'12. Treat as a trading market between support and resistance.

Grains: This morning Nov. Beans are 2 lower at 1032'4, Dec. Corn 5 lower at 459'2 and Dec. Wheat 12 lower at 729'0. These current prices are well off the recent highs made last evening at 1043'2 for Nov. Beans, 469'0 in Dec. Corn and 748'4 in Dec. Wheat. On Friday I recommended taking profits on all Dec. Corn call spreads. If you remain long Dec. Corn futures either take profits or raise your protective sell stop to the 451'0 level.

Cattle: Over night Live Cattle are slightly higher and Feeder Cattle 20-40 lower. I still feel there is a bit more room on the downside of Feeder Cattle and that Live Cattle is overbought at current price levels. That being said, if Feeder Cattle prices should break 150-200 points I would recommend short hedgers to start covering short positions and consider putting on the long 112.00/short 108.00 put spread as a replacement for current hedges.

Silver: Dec. Silver is currently 5 cents higher at 20.00. If you remain long futures either take profits or raise your sell stop to the 19.26 level. If you continue to hold the 20/22 Dec. call spread, I recommend the following action: Buy the Dec. 20.25 call/ sell the dec. 20.00 call at 11 cents or better. This will provide the opportunity to take $550+ off the table and reduce your exposure by a like amount and will result in being in the 20.25/22.00 call spread.

S&P's: Sept. S&P's are currently 6.00 lower at 1097.50. Near term support is currently 1076.00 and near term resistance 1107.00. As mentioned Friday, my bias has returned to the short side of the market and I am a seller on rallies.

Currencies: As or this writing the Sept. Euro is 114 lower at 1.2764, the Swiss 81 higher at .9902, the Yen 123 higher at 1.1965 and the Pound 116 lower at 1.5330. We remain long the Dec. Yen 1.12 put. Please note that starting tomorrow I will be quoting the Dec. contracts.

Regards,

Marc

888.908.4310 | 312.264.4310

mnemenoff@pricegroup.com