Financials: Mar. Bonds are currently 21 higher at 121'16. Continued uncertainty in N. Africa especially concerning oil has continued the flight to safety into Bonds. This mornings Weekly Jobless Claims report showed a decline of 22,000 vs. estimates of a decline of only 5,000. Durable goods showed an increase of 2.7% vs. a pre-report estimate of 2.0%. Under normal circumstances I would say these report were economically constructive and should point to lower Bond prices, these are not normal time. I still recommend the sidelines. Support is currently 119'20 and resistance 123'00. We remain with our long term position of long out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars.

Grains: Yesterday May Beans were 20 cents higher, Corn 12 higher and Wheat 2 higher. Over night Beans were 9 lower, Corn 2 lower and Wheat 1 higher. We continue to hold out of the money strangle in May Corn (short a combination of out of the money puts and calls).

Cattle: Yesterday Live Cattle closed moderately higher and Feeder Cattle moderately lower. I remain on the sidelines.

Silver: Mar. Silver is currently 6 cents higher at 33.35. We remain on the sidelines in Silver. We remain long the June Gold 1450/1500 call spread. This spread has more than doubled in price from our entry level of 7-8.00. If you were only looking for a short term trade consider taking profits. If you have a strong bullish opinion on Gold, continue to hold.

S&P's: Mar. S&P's are currently 1.00 lower at 1304.50. Over night the market was considerably lower establishing near term support in the 1295.00 area. If you remain short it is time to lower your buy stop to the 1314-1318.00 area. You might also consider either buying out of the money calls or selling out of the money puts against a short futures position.

Currencies: As of this writing the Mar. Euro is 29 higher at 1.3770, the Swiss 86 higher at 1.0803, the Yen 104 higher at 1.2226 and the Pound 5 higher at 1.6205. We remain short the Euro with a protective buy stop at 1.3840.


Marc Nemenoff
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
Contact: 888.908.4310 |