Financials: Mar. Bonds are currently 8 higher at 120'11. Continue to treat as a trading market between 118'22 and 121'14. FOMC meeting tomorrow, I expect there to be no major change in Fed policy. We remain long out of th4e money puts and/or put spreads in June and Sept. 2012 Eurodollars as a long term strategy for anticipation of higher short term interest rates over the next 18 months.

Grains: On Friday Beans closed 2 cents lower, Corn 3 higher and Wheat 21 higher. Over night Beans were 7 higher, Corn 2 higher and Wheat 10 higher. Support remains at 1394'0 and resistance at 1432'0 for Mar. Beans. Support remains at 638'0 and resistance remains at 662'0 for Mar. Corn. We remain short the Mar. Bean 1300'0 strangle and will take profits today at 114'0 if the market allows.

Cattle: On Friday Live and Feeder Cattle closed 75-80 lower. The markets are called mixed to lower this morning as a result of Friday's Cattle on Feed Report which showed the following: On Feed as of Jan. 1 105% of a year ago versus a pre-report average estimate of 104.2. Placements were 116% of a year ago versus an estimate of 113.7%. Marketed in December 105% versus 105.2%. I am a seller in both Live and Feeder Cattle 100-150 points above the market.

Silver: Mar. Silver is currently 25 cents lower at 27.12. We remain long futures from below the 27.50 level and long out of the money call spreads on the Mar. contract. At this time I am recommending a protective sell stop $1.00 below your entry level on the Mar. futures. Technically the market is starting to look like it could have a further correction. We remain long the Apr. Gold $1100 put.

S&P's: Mar. S&P's are currently 50 lower at 1279.25. Support remains at 1267.00 and resistance is currently the 1284.00-1288.00 area. I continue to prefer the short side of the market.

Currencies: As of this writing the Mar. Euro is 12 lower at 1.3579, the Swiss 56 higher at 1.0486, the Yen 23 lower at 1.2086 and the Pound 44 lower at 1.5951. On Friday we were stopped out of a recent short position in the Mar. Euro when the market traded above the 1.3560 level. We remain long the Mar. Euro 1.3000 put which is currently at a loss.


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