The Nemenoff Report - Bonds Higher, S&P's Higher, Silver Lower

By IBTimes Staff Reporter | June 02 2010 9:38 AM

Financials: Sept. Bonds are currently 21 higher at 123'14. Contiue to treat as a trading market between 122'05 and 124'28. I recommend using a close stop and only risking about 12 points on any short term trades.

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Grains: Yesterday beans were 5 cents lower, Corn 5 lower and Wheat 7 lower. Over night Beans were fractionally higher, Corn 1 higher and Wheat fractionally higher. I still feel that the Grains are trading at near term support levels. If the overnight lows should hold in spite of a stronger Dollar the market might be setting up for some upside momentum. We remain long out of the money calls in Nov. Beans and short the Sept. Corn 340'0/420'0 strangle. The Spet. Corn strangle is currently trading at about 18'0 (we originally sold this position at 24'0). If this strangle trades below 16'0 you might consider looking for profit taking opportunities.

Cattle: Yesterday Live Cattle closed slightly higher and feeder Cattle 25-100 higher depending on the contract month. Feeder's rallied as feed grain prices declined but still remain in a downtrend. As for Live Cattle, I still believe we are approaching support on the Aug. contract in the 87.50-88.50 area at which point I recommend the long side of the market.

Silver: July Silver is currently 36 cents lower at 18.18. Yesterday the market failed to reach the 18.80 resistance level (the high was 18.735) which leaves me a bit concerned. We remain long and I am recommending using a protective sell stop at 17.37. If the market should rally to the 18.80 level, either take profits or raise your sell stop to your break even level.

S&P's: Jun. S&P's are currently 5.50 higher at 1075.00. Yesterday the market provided a selling opportunity at the 1092.00 level and eventually broke to the overnight low of 1067.25, just about covering the distance of yesterday's support and resistance levels of 1063.00 to 1092.00. If you went short, take profits.

Currencies: As of this writing the Jun. euro is currently 58 lower at 1.2200, the Swiss 25 lower at .8633, the Yen 108 lower at 1.0855 and the Pound 63 lower at 1.4599. Yesterday we went short the Pound above the 1.4650 level. I recommend either taking the short term profit this morning or lowering your buy stop to your break even level.

Regards,

Marc