The Nemenoff Report Bonds higher, S&P's Lower, Silver Lower

By IBTimes Staff Reporter | July 16 2010 10:24 AM

Financials: Sept. Bonds are currently 1 higher at 127'22. If you remain spread long 10 Yr. Notes/ short Bonds I recommend continuing to hold the position. If you are currently on the sidelines I would remain so until next week. Near term support is currently 126'28 and near term resistance 128'02.

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Grains: Yesterday Nov. Beans closed 26 cents higher, Dec. Corn 9 higher and Dec. Wheat 36 cents higher. Over night Beans were fractionally lower, Corn fractionally lower and Wheat 6 lower. Yesterday we took profits on out of the money call spreads in Nov. Beans. Producers should be looking for hedging opportunities in Dec. Corn ( I recommend a combination of long out of the money puts and short out of the money calls.). Next week we will look for a speculative option opportunity in Beans and Corn.

Cattle: Yesterday Live Cattle were slightly higher and Feeder Cattle slightly lower. We remain short Oct. Cattle with a protective buy stop at 95.65. If Oct. Cattle trades below the 92.80 level, lower your buy stop to the 94.60 level.

Silver: Sept. Silver is currently 48 cents lower at 17.87. Lower than expected PPI and CPI over the last couple of trading sessions have taken the inflatioary bite out of the market for the moment. The Dollar has declined dramatically in the last week and precious metals have not rallied accordingly causing Silver to not only decline in terms of Dollar value but declined in terms of intrinsic value. We remain long the Dec. Silver 20/22 call spread. I am withdrawing my recommendation to go long futures below the 17.20 level for the time being.

S&P's: Sept. S&P's are currently 10.00 lower at 1080.50. We continue to have a short bias (either short futures, short calls or long puts) to this market. Near term support remains in the 1072.00 area.

Currencies: As of this writing the sept. Euro is 55 higher at 1.2950, the Swiss 6 lower at .9583, the Yen 113 higher at 1.1554 and the Pound 52 lower at 1.5357. I continue to have a short bias to the Euro in spite of current losses and must admit that I'm being a bit stubborn. If this market doesn't start trading at lower prices by Tues. I will take action at limiting losses by either liquidating positions or selling out of the money puts against current positions. The Dollar is once again lower.