Financials: June Bonds are currently 11 higher at 118'23. The Monthly Unemployment Report showed an increase in non-farm payrolls of 192,000 Pre-report estimates ranged from +150K to +285K with the average guesstimate around 215K. In the last few sessions the market has traded the gamut of support in the 118'14 area and resistance in the 120'24 area. At this juncture I recommend the sidelines and wait for a rally above the 120'00 level to reinstate a short position. We continue to hold our long put positions in June and Sept. 2012 Eurodollars.
Grains: Yesterday May beans closed 17 cents higher, Corn 15 higher and Wheat 12 higher. Over night Beans were 7 higher, Corn 2 higher and Wheat 9 higher. As mentioned yesterday, I feel May Corn will once again test resistance in the 740'0 area. We continue to remain short the May Corn 660'0/740'0 strangle (short both out of the money puts and calls).
Cattle: Yesterday Live and Feeder Cattle once again closed sharply higher as cash markets remained firm to higher for Live Cattle. We are once again pursuing the short side of these markets with a protective buy stop 250 points above the market.
Silver: May Silver is currently 26 cents higher at 34.59. Apr. Gold is currently 3.00 higher at 1419.00. We remain long the June Gold 1470/1500 call spread.
S&P's: Mar. S&P's are currently 1.00 lower at 1329.00. This mornings Employment Report has had little effect on the market at this time. Personally I feel this market is overbought and feel the market will correct to the downside. We remain short with a smaller than usual position from the 1324.00 area.
Currencies: As of this writing the Jun. Euro is 6 lower at 1.3930, the Swiss 21 higher at 1.0760, the Yen 68 lower at 1.2072 and the Pound 31 lower at 1.6224. We continue to hold a bearish posture on the Euro. Starting Monday the June contract will be considered lead month in the currencies.
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
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