Financials: June Bonds are currently 3 higher at 140'28 and the 10 Yr. Note 1 higher at 131'11. There were a number of reports this morning: Producer Prices were flat. The Trade Deficit was 46.03 billion dollars vs. average analyst expectations of $52.2 billion. A somewhat friendly figure due to the decline in oil prices (exports were $181.16 billion, imports $277.19 billion). Weekly Jobless Claims were up 13,000 vs. expectations of up only 1,000, a slightly negative number. We remain short the June Bond 142;00/140'00 call spread. For the near term support is now 140'06 and resistance 141'03.
Grains: Over night May Corn traded 2'2 higher at 638'2, July Corn 1'6 higher at 628'6, May Beans 6'0 higher at 1428'0 and May Wheat 4'4 higher at 632'4. We are currently on the sidelines having cover short position in Corn. I will now look to the long side of July Corn on a break below the 617'0 level if the market allows.
Cattle: Yesterday June LC closed 175 higher at 115.05 and May FC 182 higher at 149.42 due to short covering and a firm to higher cash market. Over night both of these markets are 125+ higher on some follow through buying now that some technical indicators have turned up. As mentioned over the last few days I want to be a buyer on breaks. I will feel comfortable going long June LC below the 115.50 area with an initial risk of 200 points. Near term resistance is the 116.70-117.10 area.
Silver: May Silver is currently 35 cents higher at 31.94 and June Gold 5.00 higher at 1667.00. I will be looking to the long side of the market on sharp breaks.
S&P's: June S&P's are currently 5.00 higher at 1369.00. Near term support is currently 1363.00 and near term resistance 1374.00. Not much room for anything but short term trading. A bit longer term support is currently the 1351-1355.00 area with resistance in the 1380-1384.00 level, areas where I am more willing to look for a trade.
Currencies: As of this writing the June Euro is currently 80 higher at 1.3184, the Swiss 65 higher at 1.0978, the Yen 7 higher at 1.2372 and the Pound 58 higher at 1.5954. I am on the sidelines.
Regards, Marc
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