Financials: Mar. Bonds are currently 5 higher at 119'20. Yesterday's support of 119'18 has been penetrated putting support now at the Dec. 16th low of 118'22. Resistance has also been lowered from the 122'08 level to 121'14. I still prefer to trade the Bonds from the short side of the market on rallies. We remain long out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars.

Grains: Yesterday Beans closed 2 higher, Corn 12 higher and Wheat 6 higher. Over night Beans were 3 lower, Corn fractionally higher and Wheat 2 higher. Commercial buying and a cut in the crop estimate for Argentina helped rally prices from early morning lows which tested and slightly penetrated yesterday's stated support levels of 1394'0 in Mar. Beans and 638'0 in Mar. Corn. Resistance remains at 1432'0 for Mar. Beans and 662'0 for Mar. Corn. We remain short the Mar. Beans 1300'0 strangle. I will be willing to take profits if this trade trades below the 112'0 level today (thurs. close for this trade was 126'0)

Cattle: Yesterday Live Cattle closed slightly higher and Feeder Cattle 100+ lower on the Mar. contract. I will be a seller in Mar. Feeders above the 128.50 level and a seller in Apr. Cattle above 115.00 with a 200 point risk.

Silver: Mar. Silver is currently 12 cents lower at 27.35. Yesterday we went long futures below the 27.50 level. We remain long out of the money call spreads in the Mar. contract. We also remain long the Apr. Gold 1100.00 put.

S&P's: Mar. S&P's are currently 8.00 higher at 1284.00. Support is currently at 1267.00 and I feel the market is currently in resistance. I prefer the short side of this market.

Currencies: As of this writing the Mar. Euro is 77 higher at 1.3543, the Swiss 79 higher at 1.0421, the Yen 48 higher at 1.2097 and the Pound 69 higher at 1.5974. If you remain short the Euro, continue to use a protective buy stop at 1.3560. Yesterday we went long the Mar. euro 1.30 put.

Regards,

Marc Nemenoff
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
Web: http://www.pricegroup.com/commentaries_marc%20nemenoff.asp
Contact: 888.908.4310 | mnemenoff@pricegroup.com