Financials: Dec. Bonds are currently 26 higher at 141'08 and the 10 Yr. Notes 15 higher at 130'08. The unknown factors as to the transitional governemnts of Italy and Greece has once again sent the market into a flight to safety as the market appears to be in the risk off mode for the day. For the moment I'm just looking at the Bonds as short term trades between 140'05 and 143'05 favoring the short side of the market above the 142'26 level.

Grains: On Friday Beans were 8 cents higher, corn 7 lower and Wheat 3 lower. Over night Beans were 9 cents higher, Corn fractionally higher and Wheat 1 higher. As mentioned Friday, my bias is now neutral on the grains and I expect these markets to fluctuate daily with the strength and weakness of the Dollar because of the effect the value of the Dollar will have on export demand. I am on the sidelines. Now that we are near mid month, tomorrow I will start quoting March Corn and Wheat instead of Dec.

Cattle: On Friday Dec. LC closed 105 lower at 120.55 and Jan. FC unchanged at 145.675. Dec. LC has now broken nearly 475 points from the Nov. 4th high of 125.375 and coming close to support in the 119.00 area. If you are short this market I recommend using a close protective buy stop. My bias remains negative but to quote an old trading adage better to be out too early than too late.

Silver: Dec. Silver is currently 35 cents lower at 34.35. If you have a long term bullish bias I recommend out of the money call spreads for March 2012 expiration.

S&P's: Dec. S&P's are currently 10.00 lower at 1251.75. Near term support is currently 1243.00 with near term resistance once again in the 1265.00 area. On Friday we went short in the 1254.00 area and took some heat so to speak. If you went short at this level I recommend taking the small profit and standing aside for the moment.

Currencies: As of this writing the Dec. Euro is trading 118 lower at 1.3630, the Swiss 62 lower at 1.1040, the Yen 28 higher at 1.2992 and the Pound 141 lower at 1.5917. To be honest these markets have become untradeable for me on a daily basis. My longer term feeling is that the dollar will strengthen in the coming months until transitional governments in Italy and Greece can prove their themselves in dealing with sovereign debt problems. For the moment I am on the sidelines but still holding out of the money puts in the. I will be looking at out of the money put strategies in the Mar. 2012 Euro later this week.

Regards,
Marc
888.908.4310 | 312.264.4310
mnemenoff@pricegroup.com