Financials: Bonds are currently 8 lower at 115'08. This morning I am looking to put on the Jun. Bond long 114'00 put/short the Jun. Bond 112'00 put spread for 34 points ($531.25). If this weeks Unemployment Report shows more jobs created than expected, the Bonds should continue their downward trend. This put spread carries a risk limited to the premium that is paid and a maximum value of $2,000 ($1468.75 profit) if the spread comes fully into the money near expiration.
Grains: Yesterday Beans closed 15 cents higher, Corn fractionally higher and Wheat unchanged. Over night Beans were 2 higher, Corn 1 higher and Wheat 4 higher. A dock strike in Argentina pushed Beans higher for the day. We remain short the July Bean 880'0/1000'0 strangle which closed at 27'4 cents. I will be a buyer in May Wheat below the 457'0 level if the market allows. Long hedgers in Corn should consider buying for the short term needs.
Cattle: Yesterday Apr. cattle closed 132 higher at 95.37, Jun. 132 higher at 92.90 and Aug. 155 higher at 90.80. We are currently on the sidelines having liquidated the long Aug./short Apr. spread in the 445 point premium Apr. area.
Silver: May Silver is currently 3 cents lower at 17.38. If you remain long futures I recommend taking partial profits in this area. If you are long calls and/or call spreads I recommend taking profits if you have them, above the 17.50 level. Support remains in the 16.30 area and resistance in the 17.60 area.
S&P's: Jun. S&P's are up about 1.00 at 1170.00. We continue to hold the combination of short futures and short out of the money puts.
Currencies: As of this writing the Jun. Euro is 5 lower at 1.3458, the Swiss 8 lower at .9397, the Yen 44 lower 1.0765 and the Pound 116 higher at 1.5083. I recommend taking profits on all long June Yen puts and/or put spreads if the Jun. Yen trades below the 1.0750 level.