Bonds Lower, S&P's Higher, Silver Higher
Financials: Bonds are currently 10 lower at 119'06. Since my last report (1/25/2010) we were able to cover our short Mar. Bond 119'00 put at 50 points or better (this position traded as low as 32 points). Since my last report the market has had a range of 117'08 to 119'18. As expected the market has seen a flight to quality because of a break in equities and debt crisis in Greece among other entities in the European Uninon. The Bonds are approaching long term resistance in the 120'03 area. Treat the Bonds as a trading affair between 117'20 and 120'02. At the moment I favor the short side of the market on rallies to resistance.
Grains: Since my last letter we were stopped out of a long position in the Mar. Beans when the market dropped below the 939'0 level. Currently the Beans are 13 cents higher at 927'0, Mar. Corn 4 higher at 355'6 and Mar. Wheat 4 higher at 478'0. We are currently on the sidelines, but favor the long side of Mar. Corn on breaks below the 347'0 level.
Cattle: Apr. Cattle closed at 90.40 on Friday, up 32 points. We are currently on the sidelines. Near term support is currently 88.60 and near term resistance 91.40. Treat as a trading market between support and resistance.
Silver: Mar. Silver is currently 16 cents higher at 14.99. We currently have no futures position and remain long out of the money call spreads in the July contract. As I am sure you have noticed, Silver has had a dramatic drop since my letter dated Jan. 25th. A recovery in the Dollar and a drop in equities have been the main contributors. The market is now near short term support in the 14.50 area and longer term support in the 14.00 area. I am once again looking to work my way into a long futures position on breaks. If you trade multiple contracts, I recommend buying into this market on a scale down basis below the 14.70 level. Resistance is currently the 16.10 level.
S&P's: Mar. S&P's are currently 2.25 higher at 1062.00. If you remain long puts, take profits. My near term down side objectives have been met for the moment. Near term support is currently 1053.00 and near term resistance 1070.00
Currencies: As of this writing the Mar. Euro is 41 higher at 1.3676, the Swiss 26 higher at .9335, the Yen 26 lower at 1.1190 and the Pound 7 higher at 1.5607. We have covered all short futures positions on the currencies and have liquidated all long put positions. My upside objective in the Mar. Dollar Index of the 80.20 level has been realized. I feel the dollar is currently at a fair value and am hesitant to trade the currencies at present levels as I feel they are somewhat oversold at present levels