Financials: June Bonds are currently 9 higher at 116'17. We continue to hold the Jun. Bond 114'00/112'00 put spread. I recommend covering the short 112'00 leg of the put spread at 12 points or better which will leave us long the 114'00 put. Resistance in Jun. Bonds is currently the 116'24 level. I will treat the Bond futures as a trading market from the short side on rallies above the 116'20 level. Near term support is the 115'06 level.
Grains: Yesterday beans closed 7 cents higher, Corn 2 higher and Wheat 2 higher. Over night Beans were 2 lower, Corn 1 lower and Wheat fractionally higher. If you remain long May Wheat either take profits above the 470'0 level or continue to use a protective sell stop at 461'0. We continue to hold the Nov. Beans 1020'0/1060'0 call spread which we purchased at 8'4.
Cattle: Yesterday Live and Feeder Cattle closed moderately lower. Over night the markets were slightly lower. Producers who are lo0ng out of the money puts as a hedge should consider now selling slightly out of the money calls and collecting the premium as a means of partially offsetting the cost of the puts. Keep in mind that being short calls poses an open ended risk of adverse price movement.
Silver: May Silver is currently 14 cents lower at 18.28. I continue to be on the sidelines. I will be looking at a break below the 17.40 level as a buying opportunity if the market allows.
S&P's: June S&P's are currently 2.50 lower at 1190.00. On Friday I was stopped out of a short futures position and simultaneously covered a short out of the money put position. In an effort a full disclosure and willingness to admit losses, this trade cost a bit more than $2500.00. I will now treat the market as a trading affair between 1078.00 and 1097.00, risking about 6.00 points whether longer or short.
Currencies: As of this writing the Jun. Euro is trading 3 higher at 1.3592, the Swiss 6 higher at .9456, the Yen 44 higher at 1.0781 and the Pound 44 higher at 1.5415. The Euro and the Pound are now trading at resistance and I recommend the short side of the market by either selling futures or out of the money Jun. Calls. I am selling the Jun. Euro 1.4000 call for 62 points or better for a short term trade. Keep in mind if you sell the call there is only limited profit potential. If you sell the futures there is the chance of more profit. I would initially risk 125 points on a futures position. If the Euro trades below the 1.3530 level either take profits on short futures or lower your buy stop to your entry level.