Financials: Mar. Bonds are currently unchanged at 120'27. I still have a negative long term bias to the Bonds but I recommend the sidelines for the time being. The prospect for a continued flight to safety because of political uncertainty in the Mid-East and Northern Africa makes me want to err on the side of caution. That being said, I want to continue to hold the long put and/or put spread in the June and Sept. Eurodollars.
Grains: Yesterday Beans, Corn and Wheat all closed down the daily limit as traders and funds headed for the sidelines. Over night Beans were 5 cents higher, Corn 16 lower and Wheat 11 lower. I will be a buyer in May Corn below the 655'0 level. We continue to hold the combination of short the May 660'0 put and short the May Corn 740'0 call.
Cattle: Yesterday Live Cattle closed 150 lower and Feeder Cattle 85 lower. Over night Live Cattle are slightly higher and Feeder Cattle about 75 higher due to the declining cost of feed grain. I remain on the sidelines.
Silver: Mar. Silver is currently 17 cents higher at 33.04. I remain on the sidelines in Silver. We remain long the June Gold 1450/1500 call spread.
S&P's: Mar. S&P's are currently .25 lower at 1314.25. Support is currently 1310.00 and resistance 1326.00. If support is broken the next level of support will be the 1294.00 area. Yesterday we went short. If you are short I recommend either buying an out of the money call or selling an out of the money put against your futures position as a way of managing the risk in what I am sure will be volatile market.
Currencies: As of this writing the Mar. Euro is 55 higher at 1.3713, the Swiss 15 higher at 1.0675, the Yen 6 lower at 1.2087 and the Pound 80 higher at 1.6223. We remain short the Euro with a protective buy stop at 1.3840.
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
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