Financials: Mar. Bonds are currently 8 higher at 144'07 and the 10 Yr. Notes 5 higher at 131'25. Durable Goods orders came out this morning down a surprising 4.0% vs. expectations of down 1.1%. I still see the Bonds as a trading affair between 140'00 and 145'00. Starting Thursday, June contracts will be considered lead month and my recommendations will reflect this.

Grains: Yesterday May Corn closed 4 cnets higher, May Beans 15 higher and May Wheat 11 higher. Over night May Corn was was 2'2 higher at 650'6, May Beans 6'4 higher at 1309'0 and May Wheat 6'2 higher at 659'0. Today I am looking to sell the July Corn 600'0/700'0 strangle (selling a combination of out of the money puts and calls) for around 45'0.

Cattle: Yesterday May FC closed 125 lower at 160.70 and April LC 87 lower at 128.625. We remain short for the moment. If Apr. LC trades below 127.50 either take profits or enter a protective buy stop at 129.50.

Silver: May Silver is currently 45 cents higher at 36.06 and Apr. Gold 5.00 higher at 1780.00. Trends remain up. Continue to hold out of the money call spreads.

S&P's: Mar. S&P's are currently 1.00 higher at 1368.00 after making an overnight (and new contract) high of 1373.75. The market came off of these highs after the release of the Durable Goods Report. I still feel this market is overbought, and if you have been reading this report daily, I've obviously been beat up a bit trying the short side of the market. You might consider selling in the money call spreads on the Mar. contract which expires on Mar. 16th and has limited risk.

Currencies: As of this writing the Mar. Euro is 36 higher at 1.3434, the Swiss 31 higher at 1.1144, the Yen 12 lower at 1.2418 and the Pound 20 higher at 1.5837. I still like the short side fo the Euro on rallies with a protective buy stop just above 1.3540.

Regards, Marc 888.908.4310 | 312.264.4310 mnemenoff@pricegroup.com