Financials: Jun. Bonds are currently 5 higher at 115'02. Friday's employment report showed an increase in non-farm payrolls of 162,000 jobs. Not including census takers, which accounted for approx. 49,000 jobs (less than expected), the number was considered better than expected. The result was a break of 1'01 during Friday's abbreviated session. I continue to feel that interest rates are headed slightly higher from current levels and continue to hold the Jun. Bond 114'00/112'00 put spread.
Grains: There was little change in Grain prices over the weekend. The electronic markets closed this morning with May Beans 3 cents higher at 945'2, Corn unchanged at 344'4 and Wheat 1 lower at 453'6. On Thursday I was able to take a short term profit on the July Beans 880'0/1080'0 strangle at 22'0. If you remain short the strangle you might consider buying it in at 20'4 or better this week. Keep in mind that July Beans have the potential to get quite volatile depending on weather, planting intentions and the value of the dollar in the next 10 weeks.
Cattle: Live Cattle closed slightly higher on Thursday and looks a little higher this morning. I currently have no speculative recommendation for this market. I continue to recommend that Hedgers use put options as opposed to short futures positions.
Silver: May Silver is currently 7 cents higher at 17.96. This market has met all my near term objectives. If you continue to hold out of the money calls and/or call spreads, I recommend taking profits.
S&P's: Jun. S&P's are currently 4.00 higher at 1177.50. I remain short a combination of futures and out of the money puts. I am currently using a protective buy stop at 1192.00. If the market trades below the 1166.00 level, I will lower my stop to the 1186.00 level.
Currencies: As of this writing the Jun. Euro is 9 higher at 1.3495, the Swiss 22 higher at .9426, the Yen 34 higher at 1.0600 and the Pound 77 higher at 1.5264. I am currently on the sidelines as my near term downside objectives have been met in the Euro and the Yen. Still feel that the predominant trend is for a stronger dollar and will look at a rally in the Euro to the 1.3800 level and the Pound above 1.5350 as selling opportunities. I will look at a break in the Dollar Index below the 80.30 level as a buying opportunity.