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

 @ibtimes
on February 23 2010 10:03 AM

Financials: Mar. Bonds are currently 9 higher at 116'21. A stronger Dollar, lower Equities and a reported price decline in housing prices has boosted the market slightly. For the moment I still feel that this market is range bound between 115'28 and 117'08. A close above 117'13 could provide some upward momentum and take us out of the current trading range.

Grains: Yesterday Beans were 16 higher, Corn 11 higher and Wheat 11 higher. Over night Beans were fractionally lower, Corn 1 lower and Wheat 5 cents lower. Continued rains in South America have dampened crop expectations somewhat boosting prices to near resistance levels. Near term resistance remains at 971'0 for May beans and 390'0 for May Corn. Closes above these levels could generate a buy signal. The May Beans 880'0/1000'0 strangle settled at 33'0.

Cattle: Yesterday Apr. Cattle closed 7 points lower at 93.22. Over night the market is trading slightly lower. We remain short with a protective buy stop in the 94.80 area.

Silver: Mar. Silver is currently 24 cents lower at 15.98. We continue to hold out of the money call spreads in the July contract. If the market trades below the 15.20 level, cover the short end of any call spreads. Long term support is currently the 14.80 level.

S&P's: Mar. S&P's are currently 4.00 lower at 1103.50. The market has given a few opportunities to go short at the 1111.00 resistance level over the past session. If you went short either take the short term profit or use a protective buy stop at 1114.00. If the market trades below the 1100.00 level, lower your buy stop to the 1107.00 level. Near term support remains at 1092.00. We remain long out of the money puts.

Currencies: As of this writing the Mar. Euro is 46 lower at 1.3561, the Swiss 45 lower at .9252, the Yen 52 higher at 1.1019 and the Pound 48 lower at 1.5438. The Dollar has gone from lower to higher against the Euro this morning with the release of disappointing French consumer confidence and German business sentiment. The Mar. Dollar Index is currently 14 higher at 80.73. I remain on the sidelines at this time.

Regards,

Marc

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