Financials: Mar. Bonds are currently 2 higher at 121'19. This morning's GDP Report showed 4th quarter growth at 2.8% versus pre-report expectations of 3.2%. This was somewhat disappointing and rallied the Bonds from the overnight low of 121'02. I still remain on the sidelines despite my long term negative bias for this market. Resistance remains in the 123'00 area. We continue to hold out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars. Of note: On Monday June will be considered the lead month.

Grains: Yesterday May Beans closed 2 cents lower, Corn 5 lower and Wheat 15 lower. Over night Beans were 1 higher, Corn 5 higher and Wheat 9 higher. We continue to hold the combination of short the May Corn 660'0 put and short the May Corn 740'0 call. First notice day for Mar. contracts is Monday.

Cattle: Yesterday Live cattle closed about 30 lower and Feeder Cattle about 40 higher. I remain on the sidelines.

Silver: Mar. Silver is currently 35 cents lower at 32.79 after falling sharply late yesterday. I remain on the sidelines. We remain long the June Gold 1450/1500 call spread. Of note: Monday I will be quoting the May contract for Silver as first notice day for Mar. contracts is Monday.

S&P's: Mar. S&P's are currently 8.00 higher at 1310.75. We remain short with protective buys tops in the 1314-1318.00 area. Support is now the 1387-1394.00 level for the near term.

Currencies: As of this writing the Mar. Euro is 57 lower at 1.3748, the Swiss 67 lower at 1.0750, the Yen 1 higher at 1.2234 and the Pound 56 lower at 1.6082. We remain short the Euro with a protective buy stop at 1.3840. If the market trades below the 1.3690 level, lower your buy stop to the 1.3817 level.


Marc Nemenoff

Senior Market Analyst, Price Futures Group

Publisher, Nemenoff Letter


Contact: 888.908.4310 |