Financials: June Bonds are curently 20 higher at 141'03 and the 10 Yr. Notes 8 higher at 131'13. We remain short the June 142'00/140'00 call spread.
Grains: Over night May Corn traded fractionally higher at 638'2, July Corn fractionally higher at 629'4, May Beans 1'2 higher at 1442'2 and May wheat 1'4 lower at 637'4. I will be a buyer in July Corn below the 617'0 level if the market allows.
Cattle: Yesterday June LC closed 210 higher at 117.15 and May FC 282 higer at 152.25. Both of these markets are currently trading about 40 lower. If you are long you might consider taking profitsrecognizing that the long term trend remains down and the market has had a pretty good run up over the last few sessions. That being said, I will be a buyer on a break to the 115.50 level in June LC.
Silver: May Silver is currently 50 cents lower at 32.09 and June Gold 13.00 lower at 1667.00. I remain on the sidelines anticipating further breaks before entering these markets from the long side.
S&P's: June S&P's are currently 11.00 lower at 1375.00. The market was somewhat disappointed by China's GDP which was below expectations at 8.1%. Also U. of Michigan consumer sentiment came in at 75.7 vs. expectations of 76.1. Yesterday the market reached and somewhat exceded resistance in the 1380-1384.00 area (overnight high was 1388.50). If you went short at these levels, either take the short term profit or use a protective buy stop at 1381.00. If the market trades below 1370.00, lower your stop to the 1376.00 area. Near term support is now the 1363.00 level.
Currencies: I remain on the sidelines.
Regards, Marc
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