Financials: June Bonds are currently 8 lower at 117'03. Resistance remains in the 118'00 area. I still recommend the short side of this market. If you establish a short position, consider selling an out of the money put three strike prices below the market as a way of collecting some premium nd also providing some protection against adverse price movement. The Greek debt situation and their ability to roll over some 20 Billion Dollars worth of debt instruments in the coming months will no doubt have an effect on both the Bonds and the Currencies.
Grains: Yesterday May Beans closed 1 cent higher, Corn fractionally lower and Wheat fractionally lower. Over night Beans were 5 higher, Corn 2 higher and Wheat 2 higher. The market is a bit higher due to a weak Dollar this morning, some minor concerns over S. American crops and some concern over higher than average moisture in planting areas here in the U.S. I continue to like the long side of the market on breaks for the short term. Longer term I feel the direction of the Dollar will be a dominant factor, and for the moment that is an unknown (the predominant trend at the moment is for a higher Dollar). The May Beans 880'0/1000'0 strangle is currently at 28'0. I will take profits (buy the 880'0 put and buy the 1000'0 call) at 21'0 this week if the market allows.
Cattle: Yesterday Apr. Cattle closed 105 higher at 92.77. We have been stopped out of any remaining short positions as the market has traded above our break even level. As mentioned yesterday I expect there to be quite a bit of rolling of long positions out of the Apr. and intro the Jun. and Aug. Yesterday open interest in Apr. declined by 4,000+ while June gained 900+ and Aug. gained 3,000+. Also of note: Overall open interest is at near record levels as the market is trading at/near recent highs. Commodity funds have been noted buyers over the last few sessions. I am not ready to go long at present levels, but will be watching for a buying opportunity on a sharp break.
Silver: May Silver is currently 14 cents higher at 17.21. If you are long multiple contracts (I am on the sidelines in futures) I recommend taking at least partial profits. We remain long out of the money call spreads on the July contract.
S&P's: Mar. S&P's are currently 2.00 higher at 1119.50. We have covered all short futures positions and remain on the sidelines. I continue to recommend being long out of the money puts as portfolio insurance.
Currencies: As of this writing the Mar. Euro is 45 higher at 1.3645, the Swiss 29 higher at .9325, the Yen 12 lower at 1.1268 and the Pound 104 higher at 1.5052. I feel the Euro is in an oversold situation at the moment and has the ability to rally back to the 1.38 level. I will be a seller in the Jun. Euro above 1.3800 if the market allows. I continue to recommend being long either out right puts or put spreads in the Jun. Yen. The Mar. Dollar Index is currently 25 lower at 80.32. Starting on Monday I will consider June the lead contract.