Financials: Mar. Bonds are currently 12 higher at 121'27. Continue to treat Bonds as a trading market between 119'18 and 122'08 for the near term. We remain long out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars.

Grains: Yesterday Beans closed a penny higher, Corn 11 higher and Wheat 13 higher. Over night Beans were 6 lower, Corn 4 lower and Wheat 13 lower. Resistance remains at 1432'0 for Mar. Beans with support at 1394'0. Support for Mar. Corn remains at 619'0 with resistance in the 650'0 area. We remain short the Mar. Beans 1300'0 strangle (short both the 1300'0 put and call).

Cattle: Yesterday Live Cattle closed about unchanged and Feeder Cattle closed moderately higher. Overnight these markets are moderately lower. We remain on the sidelines.

Silver: Mar. Silver is currently 70 cents lower at 28.56. We remain long out of the money call spreads on the Mar. contract. I will be a buyer of futures below the 27.50 level. As mentioned a couple weeks ago, you might consider going long the Apr. Gold 1100 put which is trading below 2.00($200.00). In the event of a substantial break it could be a lottery ticket.

S&P's: Mar. S&P's are currently 1.00 lower at 1280.25. Support remains at 1256.00 and I feel the market is currently in resistance. Continue to treat as a trading market.

Currencies: As of this writing the Mar. Euro is 2 higher at 1.3345, the Swiss 11 lower at 1.0374, the Yen 14 lower at 1.2092 and the Pound 20 higher at 1.5856. We are on the sidelines in the Euro but will once again look to the short side of the market above the 1.3450 level. We remain short the Swiss with a protective buy stop in the 1.0440 area. There will not be a report on Monday as most markets will closed in observance of Martin Luther King Day.

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