Financials: June Bonds are currently are currently 17 lower at 116'30. Stronger equities due to better than expected profits in the technology sector have taken some of the buying out of the interest rate sector. The possibility of a bailout program to refinance Greek debt and institution of a plan to reduce budget deficits as a percentage of GNP has tempered the flight to quality. I still favor the short side of this market on rallies. The 118'00 level remains long term resistance at this moment in time. If you go short this market, consider selling an out of the money put about 3 strike prices below your short position as a way of collecting some premium and also providing some protection against adverse price movement.
Grains: Yesterday May Beans closed 1 higher, Corn 7 lower and Wheat 13 lower. Over night Beans were unchanged, Corn fractionally higher and Wheat fractionally higher. I still favor the long side of these markets on a sharp break. The May Beans 880'0/1000'0 strangle closed at 28'4 cents. For the near term I have an objective of 21'0 cents for this trade and will take the profit this week if my objective is reached.
Cattle: Yesterday Apr. Cattle closed 20 lower at 91.72. If you remain short, either take profits or continue to use a protective buy stop at your break even level. Something to note: The open interest on the Apr. contract is currently 137,481. Over the next three to four weeks I suspect that there will be a movement in open interest of nearly 100,000 contracts into both the June and Aug. contracts. The bulk of this movement should be initiated by Index Funds which are always long the market and will need to sell the nearby month to avoid a delivery situation and buy the deferred contracts. This should put pressure on the Apr. contract in relation to the Jun. and Aug. Keep an eye on the Apr. / June spread for opportunities in spread positions.
Silver: As of this writing the May Silver is currently 15 cents higher at 16.61. The market is once again approaching resistance in the 16.80 to 17.00 area. If you are long the market, consider taking at least partial profits if the market allows. We remain long out of the money call spreads on the July contract.
S&P's: Mar. S&P's are currently 5.50 higher at 1120.00. Near term resistance of 1111.00 was penetrated yesterday. I recommend covering short futures positions and taking the short term loss. I continue to recommend being long out of the money puts as portfolio insurance.
Currencies: As of this writing the Mar. Euro is 8 higher at 1.3583, the Swiss 9 higher at .9286, the Yen 6 lower at 1.1224 and the Pound 34 lower at 1.4974. The Mar. Dollar Index is currently 5 lower at 80.66. I continue to recommend the June Yen 1.07/1.02 put spread.