Futures Market commentary

on February 10 2010 10:38 AM

Financials: Mar. Bonds are currently 6 higher at 118'16. Uncertainty over the Dollar and equities has kept this market in a tight trading range over the last few sessions. I continue to look at the Bonds as a trading affair between 117'20 and 120'03.

 

Grains: Yesterday Beans were 5 cents lower, Corn 2 higher and Wheat 1 lower. Over night Beans were 1 lower, Corn 1 lower and Wheat 1 higher. Yesterday reaction to the supply/demand report saw Beans open higher only to give up their opening gains and close lower for the session, Corn backed off from its highs of the session managing to close slightly higher. I still like the long side of the Mar. Corn on a break below the 347'0 level. For those of you who feel (myself included) that Beans will not move more than 50 cents in either direction in the near future, consider the following: Sell the May Beans 880'0/1000'0 strangle at 35'0 cents or better. This would entail selling the May Beans 880'0 put and the 1000'0 call and collecting 35'0 for the combination. If over the next 2 months Beans do not have a significant rally or break the value of this combination should decline.

Cattle: Yesterday Apr. Cattle closed 67 higher at 91.47. This morning the market looks about steady. Technically the market has penetrated near term upside resistance. Long term resistance should come into play in the 92.00-93.00 area. I will be a seller in this area if the market allows.

Silver: Mar. Silver is currently 3 cents higher at 15.46. We remain long out of the money call spreads on the July contract. I am willing to enter the futures market from the long side on a break below the 14.70 level.

S&P's: Mar. S&P's are currently unchanged at 1066.25. Continue to treat as a trading market between 1053.00 and 1070.00.

Currencies: As of this writing the Mar. Euro is 38 lower at 1.3735, the Swiss 10 lower at .9376, the Yen 34 higher at 1.1120 and the Pound 72 lower at 1.5610. The Mar. Dollar Index is currently 12 higher at 80.11. I still feel the Dollar is overbought and the Currencies a bit oversold. I will be a buyer in the Dollar Index in the 79.30 area and a seller in the Euro above 1.4000.

Regards,

Marc

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