Financials: Jun. Bonds are currently 20 lower at 117'06. This morning's monthly Unemployment Report showed a decline in non-farm payrolls of 36,000 jobs versus expectations of a decline of 75,000. The unemployment rate was steady at 9.7%. Yesterday the market gave the opportunity of going short at the 118'00 level (the high was 118'02). If you went short either take the short term profit or consider selling the June 115'00 put in an effort to collect some premium and provide yourself with some protection against an adverse price move. If you are uncomfortable with options and looking for a longer term play use a protective buy stop just above yesterday's high. If the market trades below 116'24, lower your buy stop to the 117'22 level.
Grains: Yesterday May Beans were 21 cents lower, Corn 3 lower and Wheat 13 lower. Overnight Beans were 3 higher, Corn 3 higher and Wheat 2 higher. The market came close to a test of support in May beans in the 935'0 area (the low was 937'2). I continue to like the long side of this market on breaks to support. Support for May Corn remains in the 368'0 area. The May Beans 880'0/10000 strangle closed at 23'4. I will cover this position at 21'0 cents today if the market allows. If we are not able to be filled at this level today, I will lower the bid next week because of time decay.
Cattle: Yesterday Apr. Cattle closed 12 higher at 93.02, losing a few ticks to the June contract. Open interest in Apr. declined 2300+ while gaining 1900+ in June and gaining 2500+ in August. I am currently on the sidelines.
Silver: May Silver is currently 7 cents higher at 17.24, If you are long futures, take partial profits. We remain long out of the money call spreads in the July contract.
S&P's: Mar. S&P's are currently 7.00 higher at 1129.25. I remain on the sidelines as far as futures are concerned. I continue to recommend being long out of the money puts as portfolio insurance. Starting Monday I will be quoting the June contract which is currently 5.00 points discount to the Mar.
Currencies: As of this writing the Jun. Euro is 5 lower1,3570, the Swiss 7 lower at .9281, the Yen 118 lower 1.1111 and the Pound 11 higher at 1.5032 (please note that the spreads between the Mar. and June contracts is minimal, only a few ticks in each of these currencies). We remain long out of the money puts and/or put spreads in the June Yen. The June Dollar Index is currently 11 higher at 80.99 The June contract is about 30 points premium to the Mar.