Financials: Bonds are currently 6 lower at 118'23. An overnight rally in the Dollar and stock index futures have put some pressure on the Bonds this morning. Near term support remains at 117'20 and resistance at 120'03. For the moment I am only looking for short term trades (1-3 days) with limited risk. Basically I am looking for overbought or oversold sold areas in which to initiate a short term trade from either side of the market.
Grains: Yesterday Beans were 16 higher, Corn 4 higher and Wheat 10 higher. Over night Beans were 9 cents higher, Corn 3 higher and Wheat 2 higher. A weaker dollar helped boost prices over night. This morning's USDA Supply/Demand Report is being looked at as friendly and it is expected that the market will hold it's overnight gains. I still favor the long side of Corn on breaks.
Cattle: Yesterday Apr. Live Cattle closed 40 higher at 90.80. Winter storms across the country have added some upside momentum to this market pushing prices near the 91.40 resistance level. Closes above this level could add some additional upside momentum. However, at the monent I feel that upside potential will be limited to the 92.00-93.00 level at which point I will be willing to try the short side of the market.
Silver: Mar. Silver is currently 12 cents higher at 15.21. We remain long out of the money call spreads on the Julty contract. As mentioned yesterday, I am once again willing to enter the futures market on breaks below the 14.70 level.
S&P's: Mar. S&P's are currently 10.00 higher at 1066.00. Treat as a trading market between 1053.00 and 1070.00.
Currencies: As of this writing the Mar. Euro is 63 higher at 1.3734, the Swiss 31 higher at 93.62, the Yen 21 lower at 1.1171 and the Pound unchanged at 1.5609. The Mar. Dollar Index is 27 lower at 80.17. I remain overall friendly to the Dollar and will be a buyer in the Mar Dollar Index below the 72.30 level if the market allows. As for the individual currencies, I still feel they are somewhat oversold and will wait for a rally before once again entering the short side of the market. I will be a seller above the 1.4000 level in the Euro and the 1.6050 level in the Pound.