Financials: June Bonds are currently 4 higher at 143'26 after trading as high as 144'26 in the wake of French and Greek elections. With rates once again nearing the 3.0% level for the 30 Yr. Bond and 1.85% for the 10 Yr. Note I cannot recommend the long side of this market. We remain short in the money call spreads which have a limited risk, however, we are running out of time for this trade as expiration is May 25th.

Grains: Over night July Corn traded 2'0 cents lower at 618'2, July Beans 7'0 lower at 1471'2 and July Wheat fractionally lower at 608'6. Of note: July Wheat is once again discount to July Corn. Continue to treat July Corn as a trading affair from the long side on breaks below 606'0.

Cattle: June LC closed 50 lower Friday at 115.37 and May FC 7 lower at 152.55. I am a buyer on 75-100 point breaks for short term trades.
Silver: July Silver is currently 37 lower at 30.06 and June Gold 7.00 lower at 1638.00. I will be looking to be a buyer in the 29.00 area in Silver and under 1600.00 in gold.

S&P's: June S&P's are currently 2.00 lower at 1360.50. The early reaction to the Socialist win in the French election was a break to the 1342.50 level (the overnight low) penetrating last weeks support of the 1363.00 area. This put the market near the March 9th low of 1338.50. I feel the market will give us another opportunity to be a buyer under the 1350.00 level. Expect this market to be quite choppy as policy changes occur to French and Greek austerity programs. Resistance is currently the 1370.00 area.

Currencies: As of this writing the June Euro is trading 50 lower at 1.3040, the Swiss 40 lower at 1.0862, the Yen 5 lower at 1.2520 and the Pound 14 higher at 1.6155. I still hold a negative bias on the Euro. That being said, if you are short multiple contracts, take some profits and reduce your position size. The Euro established some support near the overnight low of 1.2957.

Regards,
Marc
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