The Nemenoff Report - Bonds higher, S&P's Lower, Silver Higher

on May 11 2010 9:46 AM

Financials: Jun. Bonds are currently 11 higher at 121'06. A stronger Dollar and weaker Equities have renewed a flight to quality in the U.S. credit markets. Support remains at 119'19 and resistance 124'08. I will remain on the sidelines until the market reaches either support or resistance.

Grains: Yesterday Beans were 1 cent higher, Corn 1 lower and Wheat 17 lower. Over night Beans were 6 lower, Corn 5 lower and Wheat 1 lower. We remain long out of the money call spreads on Nov. Beans and short the Sept. Corn 340'0/420'0 strangle. I feel that July Wheat is approaching support below the 470'0 level and will look to be a buyer if the market allows between 455'0 and 465'0.

Cattle: Yesterday Jun. and Aug, Cattle closed about 80 higher. My recommended buy stop against short positions on the Jun. contract at 96.60 was penetrated. We remain short the Aug. contract with a protective buy stop at 95.70. If the Aug. contract trades below the 93.50 level either take profits or lower your buy stop to the 94.70 level. Producers should continue to hold long put and short call positions for price insurance purposes.

Silver: July Silver is currently 55 cents higher at 19.10. Yesterday we took partial profits from recent multiple contract long positions. This morning I am recommending to either take profits or use a protective sell stop at 18.40 on remaining postions .Resistance is currently the 19.45 area. If you put on the combination last week of long 2 mini Silver and short 1 mini Gold, take profits.

S&P's: Jun. S&P's are currently 11.00 lower at 1145.50. Yesterday we went short in the 1160.00 area. If you remain short either take profits or use a protective buy stop at 1156.00. If the market trades below the 1135.00 level, once again either take profits or lower your buy stop to the 1147.00 level. Near term support is currently the 1123.00 level, longer term support is the 1097.00 level.

Currencies: As of this writing the Jun. Euro is trading 82 lower at 1.2720, the Swiss 5 higher at .9028, the Yen 55 higher at 1.0793 and the Pound 35 lower at 1.4845. The Jun. Dollar Index is currently 24 higher at 84.57. I am recommending the sidelines for the day.

Regards,

Marc

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