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

By Roger Baettig | May 02 2012 11:21 AM

Financials: June Bonds are currently 25 higher at 142'28 after closing about 25 lower yesterday after a positive ISM Manufacturing report. This morning we are once again seeing a bit of a flight to quality because of renewed concern about Spanish and Italian debt causing the Dollar to gain against the Euro. We continue to hold the short 142'00/140'00 call spread. Friday morning we will have the monthly Employment Report. Current estimates indicate a gain of 175,000 non farm payroll jobs.

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Grains: Over night July Corn traded 1'0 lower at 628'0, July Beans 6'0 lower at 1497'4 and July Wheat 3'6 lower at 639'2. July Corn is still seeing resistance in the 630'0 area. Support has moved up from the 590'0 level to 613'0. Both Corn and Beans have seen some upside pressure due to exports to China over the last week. Of note: the CME/CBOT will be extending the hours that Grains trade electronically May 14th.

Cattle: June LC are currently 30 higher at 113.80 and May FC 30 higher at 150.50. Long term trends remain down, however, possible bottoming action taking place. My inclination is to trade from the long side, but I will await technical confirmation as opposed to trying to catch a falling knife.

Silver: July Silver is currently 37 cents lower at 30.56 and June Gold 10.00 lower at 1653.00. I remain on the sidelines awaiting lower prices before going long.

S&P's: June S&P's are currently 8.50 lower at 1392.00. Technically the market failed at yesterday's high in the 1411.00 area, putting resistance once again in the 1403.00 area. Near term support is currently the 1383.00 area. Longer term support remains in the mid 1360's.

Currencies: As of this writing the June Euro is trading 80 lower at 1.3152, the Swiss 70 lower at 1.0945, the Yen 13 higher at 1.2485 and the Pound 45 lower at 1.6170. I continue to hold a negative bias on both the Euro and the Yen.

Regards, Marc 888.908.4310 | 312.264.4310 mnemenoff@pricegroup.com