Financials: Bonds are currently 5 higher at 117'15. Support remains at 117'05 and resistance remains at 119'16. I am currently on the sidelines awaiting a rally to resistance to re-establish a short position if the market allows. We remain long out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars. If you are holding multiple contracts in the Eurodollar puts, grab some profits and reduce the size of your position.

Grains: Yesterday Beans closed 9 cents higher, Corn 1 lower and Wheat 19 higher. Overnight Beans were 4 higher, Corn 3 higher and Wheat 9 higher. This morning Grain report once again showed declining stocks, especially in Corn which showed continuing demand for Ethanol. The early call is 20+ higher in Corn, 10+ higher in Beans and Wheat 10 higher. I will be watching to see if there is follow through after the first 30 minutes or son of trading, I suspect this could be a setup of buy the rumor, sell the fact given the recent run up in Corn prices. We continue to hold the combination of short out of the money puts and calls in May Beans.

Cattle: Yesterday Live and Feeder Cattle closed moderately lower on new recent lows. This morning Feeder Cattle are 45 higher and Apr. Live Cattle about 100 higher partially in response to the bullish grain report. If you remain short either Mar. Feeder Cattle or Apr. Live Cattle lower your buy stop to just above this morning's high in Mar. FC of 125.00 and this morning's high in Apr. LC of 112.40.

Silver: Mr. Silver is currently 6 cents higher at 30.32. I remain on the sidelines.

S&P's: Mar. S7P's are currently 3.00 lower at 1318.75. Yesterday we went short and are currently using a protective buy stop 10.00 above the market.

Currencies: As of this writing the Mar. Euro is 65 higher at 1.3686, the Swiss 27 higher at 1.0408, the Yen 6 higher at 1.2143 and the Pound 30 higher at 1.6083. We remain long out of the money puts in the Euro. I still like the short side of the Pound with a protective buy stop above 1.6325.

Regards,
Marc Nemenoff
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
Web: http://www.pricegroup.com/commentaries_marc%20nemenoff.asp
Contact: 888.908.4310 | mnemenoff@pricegroup.com