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

 @ibtimes
on September 03 2010 9:32 AM

Financials: Sept. Bonds are currently 1'29 lower at 130'20. This mornings Employment Report showed a decline in non-farm payrolls of 54K versus expectations of a decline of 120K. The market movement speaks for itself, the report was favorable for the economy and negative to Bonds. The long 10 Yr. Note/ short Bond spread is now at 6'29 premium the Bonds. I recommend liquidating this spread position and standing aside until next week.

Grains: Yesterday Nov. Beans closed 3 higher, Dec. Corn fractionally higher and Dec. Wheat 5 higher. Over night Beans were 7 higher, Corn 1 lower and Wheat 8 higher. Beans are starting to once again show some support as talk of reduced yield has attracted some buying beneath the market. I would still like to see the Nov. Beans hold above the 1020'0 level before I am willing to commit to a long position with either futures or options. I still feel Dec. Corn is headed higher. If you remain long futures either take profits or continue to use a protective sell stop at 436'0. We remain long Dec. Corn call spreads. If Dec. Corn should trade above 455'0 start looking for profit taking opportunities on call spreads.

Cattle: Yesterday Live Cattle closed about 70 higher as the market saw fund buying and short covering push prices to new contract highs. Feeder Cattle closed 60-100 higher. I still feel that higher feed grain prices will pressure the Feeders but I do think there will be support 200 points below the market.

Silver: Sept. Silver is currently 12 cents lower at 19.58. If you remain long futures either take profits or raise your protective sell stop to the 18.74 level. We remain long the Dec. 20/22 call spread.

S&P's: Sept. S&P's are currently 12.00 higher at 1101.50. This mornings favorable Jobs Report has rallied the market above the 1097.00 resistance level and is now flirting with the next level of reistance in the 1103.00to 1107.00 level, levels not seen since early August. I am now changing my bias to the downside and am looking to go short at current levels. Near term support is now the 1076.00 level

Currencies: As of this writing the Sept. Euro is 24 higher at 1.2837, the Swiss 85 lower at .9773, the Yen 116 lower at 1.1760 and the Pound 59 higher at 1.5445. We remain long the Dec. Yen 1.12 put.

Regards,         Marc

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