Financials: Mar. Bonds are currently 3 higher at 118'16. Support remains at 117'05 and resistance remains at 119'16. I remain on the sidelines and will be willing to short at resistance. We remain long out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars.

Grains: On Friday Beans closed 17 cents lower, Corn 8 higher and Wheat 4 higher. Over night Beans were 1 lower, Corn unchanged and Wheat 11 higher. The combination of short the May Beans 1300'0 put and 1600'0 call is now less than 23'0 and I recommend looking for profit taking opportunities.

Cattle: On Friday Live Cattle closed moderately lower and Feeder Cattle closed 100+ higher. We are currently on the sidelines.

Silver: Mar. Silver is currently 12 cents higher at 30.12. I remain on the sidelines.

S&P's: Mar. S&P's are currently 1.00 lower at 1126.50. On Friday we were stopped out of a recent short position when the market traded above the 1323.00 level. I may be a glutton for punishment but I am looking to once again try the short side of this market with a stop above the 1337.00 level.

Currencies: As of this writing the Mar. Euro is 64 lower at 1.3470, the Swiss 45 higher at 1.0314, the Yen 26 higher at 1.2005 and the Pound 5 higher at 1.6024. If you remain short the Pound either take profits or lower your buy stop to the 1.6080 level. We remain long out of the money puts in the Euro. If you are long puts in the Euro you might consider either rolling your position into a lower strike price or selling a lower strike price against existing positions.

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