Financials: Bonds are currently 20 higher at 118'11. comments by Bernanke alluding to continued low rates for the near future and a flight to quality due to a stronger Dollar (see currency comment) and lower equities , have continue to add upward momentum this morning. Near term resistance remains at 118'24. If this level is penetrated I suspect we will have a test of long term resistance in the 119'10 area. I will be looking to trade this market from the short side in the 119'10 area if the market allows.
Grains: Yesterday Beans were 3 cents higher, Corn 7 higher, and Wheat 8 higher. Over night Beans were 6 lower, Corn 1 lower and Wheat 6 lower. I continue to recommend the short side of the market on rallies to the 971'0 level in May Beans and the 390'0 area in May Corn. I feel for the moment that a strong Dollar will limit upside potential in the Grains. The May Beans 880'0/1000'0 strangle is currently at 32'4.
Cattle: Yesterday Apr. Cattle closed 50 lower at 91.92. The 91.90 level was penetrated giving the opportunity to either cover recent short positions or to lower your protective buy stop to the 94.10 level. If the market trades below the 91.35 level, once again either take profits or lower your protective buy stop to your break even level.
Silver: May Silver is currently 12 cents lower at 15.84. I continue to remain on the sidelines as far as futures are concerned. We remain long out of the money call spreads on the July contract. If the market trades below 15.20 I recommend covering the short leg of any out of the money call spreads. I will be looking to trade the May futures from the long side below the 14.90 level if the market allows.
S&P's: Mar. S&P's are currently 11.00 lower at 1092.00. Yesterday the market stopped us out of any remaining short position in the 1102.50 area. The market is now sitting on support and I suspect it will not hold. The next level of support will be the 1080.00 level. We remain long out of the money puts. If the market trades below the 1080.00 level, consider rolling long put positions into a lower strike price.
Currencies: As of this writing the Mar. Euro is 55 lower at 1.3470, the Swiss 376 lower at .9207, the Yen 144 higher at 1.1238 and the Pound 140 lower at 1.5256. If you went short the Euro at yesterday's resistance of 1.3620, take profits. The Mar. Dollar Index is currently 23 higher at 81.15. I look for resistance near recent highs in the 81.35 area. Continued fear of credit problem for Greece, Spain, Portugal and Italy has put renewed pressure on the Euro. Both the Dollar and the Yen have been recipients of a flight to quality. To be honest I feel the Yen is starting to be over priced and recommend being long out of the money puts or put spreads.