Financials: Mar. Bonds are currently 27 higher at 118'11. A bit of a flight to safety this morning because of the uncertainty in Egypt after Mubarak's speech yesterday afternoon. Support remains at 117'05 and resistance at 119'16. I still remain on the sidelines in the Bonds awaiting a rally to resistance to renter the market from the short side. We remain long out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars but must note that we have reduced the size of our positions.
Grains: Yesterday Beans closed 18 cents lower, Corn fractionally higher and Wheat 23 lower. Over night Beans were steady, Corn 1 lower and Wheat 2 higher. As mentioned yesterday I feel these markets are overbought. We continue to hold the combination of short the May Beans 1300'0 put and short the May Beans 1600'0 call. I will be willing to take profits on this strangle at 23'0 cents (buying the combination of the put and the call at 23'0) if the market allows.
Cattle: Yesterday Live Cattle closed 150+ higher as did Feeder Cattle. We are currently on the sidelines.
Silver: Mar. Silver is currently 8 cents lower at 30.01. We remain on the sidelines. We continue to hold the Apr. Gold $1100 put which is currently at a small loss.
S&P's: Mar. S&P's are currently 5.00 lower at 1313.75. We remain short this market with a protective buy stop just above the contract high in the 1323.00 area. If the market trades below the 1306.00 level either take profits or lower your buy stop to the 1318.00 area. If by chance the market trades below 1302.00, lower your buy stop to the 1310.00 area.
Currencies: As of this writing the Mar. Euro is trading 80 lower at 1.3506, the Swiss 45 lower at 1.0269, the Yen 25 lower at 1.1978 and the Pound 108 lower at 1.5980. We remain long out of the money puts in the Euro. You might consider selling a lower strike price against current positions to take advantage of the recent break. We remain short the Pound. Either take profits now that the market is below 1.600 or lower your buy stop to 25 points below your break even level.
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
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