Financials: June Bonds are currently 1'00 higher at 147'25 and the 10 Yr. Notes 10 higher at 133'20. Another flight to safety in the wake of further speculation that Greece could leave the Euro. With yields almost at historic lows I just can't trade these instruments from the long side. I expect at some point the yield on the 30 Yr. will rise above 3.0% and the yield on the 10 Yr. will once again rise above 2.0%. Consider out of the money puts and/or put spreads for Sept. expiration in either the Bonds or the 10 Yr. Notes.
Grains: Yesterday the Grains closed sharply lower as the Dollar renwed it's upward trend and continued excellent weather and growing conditions with Corn closing 36 cents lower, Beans 30 lower and Wheat 18 lower. Over night July Corn is currently 1'0 lower at 596'0, July Beans25'0 lower at 1357'0 and July Wheat 18'0 lower at 668'0. July Corn is approaching support in the 590'0 area and I will once again be looking to the long side of the market on breaks. Users of Corn should be looking to cover short term needs on breaks.
Cattle: Aug. LC is currently 120 lower at 120.10 and Aug. FC 80 lower at 159.30. I will be a seller in Aug. LC above the 122.50 area. Producers should be looking for hedging opportunities on rallies.
Silver: July Silver is currently 40 cents lower at 27.78 and Aug. Gold 15.00 lower at 1561.00. We continue to hold a small long position in Silver. I will be looking to the long side of Gold on a break below the 1540.00 level.
S&P's: June S&P's are currently 8.00 lower at 1307.00. Renwed fears over European debt continues to pressure the market. Support remains at 1294.00 and resistance continues at 1326.00.
Currencies: As of this writing the June Euro is 58 lower at 1.2660, the Swiss 49 lower at 1.0544, the Yen 115 higher at 1.2598 and the Pound 53 lower at 1.5720. Trends remain down amid renewed speculation on whether Greece will withdraw from the Euro.
Regards, Marc
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