Financials: June Bonds are currently 11 higher at 142'04 and the 10 Yr. Notes 6 higher at 131'24. Admittedly this market has gone further to the upside than I would have anticipated. We remain short the June Bond 142'00/140'00 call spread which expires May 25th and is currently about $600.00 against me. This mornings Weekly Jobless Claims showed a decline of 2,000 vs. expectations of a decline of 5,000.
Grains: Yesterday July Corn closed 13'2 lower at 594'0, July Beans 18'4 lower at 1413'4 and July Wheat 4'4 lower at 615'6. Over night Corn traded 12'2 higher, Beans 15'4 higher and Wheat 9'2. We have been stopped out of long July Corn positions purchased in the 616'0 area with a 10 cent risk. Of note Yesterday saw a large amount of trade in the July/Dec. Corn trade with the Dec. gaining 12'0 cents on the July. I am currently on the sidelines.
Cattle: Yesterday June LC closed 175 lower at 114.82 and May FC 110 lower at 152.02. Over night LC are up about 40 points and Fc about unchanged. I like the long side of Jun. LC for short term trades with protective sell stops below the recent low of 113.90.
Silver: May Silver is currently 2 cents lower at 31.54 and June Gold about unchanged at 1641.00. I remain on the sidelines.
S&P's: June S&P's are currently 1.75 higher at 1380.00. The market had a positive reaction to the Spanish 2 Yr. and 10 Yr. auctions earlier this morning running the S&P's as high as 1390.00. Since the Weekly Jobless Claims, which was slightly disappointing the market made a new low of 1377.00. Treat as a trading affair between 1374.00 and 1387.00.
Currencies: As of this writing the June Euro is currently 23 lower at 1.3106, the Swiss 22 lower at 1.0908, the Yen 40 lower at 1.2276 and the Pound 11 higher at 1.6034. The market will be closely watching the French election process. If Sarkosy looks to be in trouble I feel the sentiment will turn negative for the Euro.
Regards, Marc
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