Financials: Mar. Bonds are curently 3 higher at 142'30 and the 10 Yr. Notes5 higher at 131'19. This morning's GDP was up 2.8% vs. expectations of 3.0%. Consumer spending was up 2.0% pretty much in line with expectations. The long 5 Yr. Note/ short 10 Yr. Note spread is currently at 7'20 premium the 10 Yr. Note. I will once again be willing to do this spread if it widens above 7'22.0 premium the 10 Yr. Note.Grains: Yesterday Mar. Beans closed 9 cents higher, Mar. Corn unchanged and Mar. Wheat 12 higher. Over night Beans were unchanged, Corn 4 higher and Wheat 1 lower. We have taken profits on recent long positions in Mar. Corn and await on the sidelines for another buying opportunity. In the meantime you might consider going long out of the money call spreads in July Corn.Cattle: Yesterday Apr. LC (Feb. is now too close to first notice day to position trade) closed 112 lower at 128.00 and Mar. FC 137 lower at 153.625. We remain short Mar. FC with a protective buy stop at 155.65. A close below 152.60 will encourage me to lower buy stops to the 154.65 level. Price increases in feed grains and negative packer margins should continue to pressure these markets. Be aware that there is a Cattle Inventory Report this afternoon.Silver: Mar. Silver is currently 34 cents lower at 33.40 and Apr. Gold 4.00 lower at 1726.00 ( Feb. is still the volume leader but open interest is rapidly moving into the Apr.). If you are long calls and/or call spreads roll long calls to higher strike prices to take advantage of recent price increases.S&P's: Mar. S&P's are currently 6.00 lower at 1309. Near term support is now 1306.50 and near term resistance 1318.00. I do not have a strong opinion at this time. Treat as a trading affair.Currencies: As of this writing the Mar. euro is currently 10 higher at 1.3120, the Swiss unchanged at 1.0876, the Yen113 higher at 1.3025 and the Pound 14 higher at 1.5703. We remain long out of the money puts in the Euro and the Yen.Regards, Marc888.908.4310 |