Financials: Mar. Bonds are currently 15 lower at 120'31. Friday's sharp rally i.e. flight to quality because of the fear of unknown in regards to the protests and potential violence in Egypt and other nearby countries, put the market back in the 120'11 area of resistance. If you went short at resistance, I recommend taking the short term profit as I too have a fear of the unknown. We remain long out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars. A little history about these positions: Over the course of the last 3 months we have both spread off our original position to lower strike prices and/or rolled our original position into lower strike prices. We have also taken partial profits. With these actions we have taken our original investment in this position off the table. Unlike the Bonds, I am willing to hold onto this position for the long term.

Grains: On Friday Beans closed 1 lower, Corn 6 lower and Wheat 20 lower. Over night Beans were up 10 cents, Corn up 5 and Wheat up 10. Unrest in the Middle East has helped push prices higher this morning. We currently have no positions, having liquidated last Thursday. I am currently looking at the combination of being short both the May Beans 1260'0 put and the May Beans 1600'0 call and collecting between 35 and 40 cents.

Cattle: On Friday Live and Feeder Cattle closed moderately higher. I remain on the sidelines but favor the short side of Apr. Live Cattle above the 114.25 level and the short side of Mar. Feeder Cattle above the 127.50 level.

Silver: Mar. Silver is currently 23 cents higher at 28.14. Since Friday this market has been quite volatile as news is constantly changing from Egypt etc. I am currently on the sidelines having been stopped out of a recent long position below the 26.50 level. If you remain long I recommend using a close stop.

S&P's: Mar. S&P's are currently 5.00 higher at 1276.50. Friday the market broke through the 1284.00 level as protests and the potential for violence escalated in Egypt. My bias has now turned to the short side of the market on rallies above the 1286.00 level. For the near term support is currently 1264.00 and resistance 1288.00.

Currencies: As of this writing the Mar. Euro is currently 86 higher at 1.3695, the Swiss 6 higher at 1.0625, the Yen 15 higher at 1.2190 and the Pound 55 higher at 1.5918. On Friday mid-session we lowered our buy stop on remaining short positions in the Euro to the 1.3670 level and have been stopped out. I am now willing to once again go short at current levels with a 100-125 risk.

Regards,

Marc Nemenoff
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
Web: http://www.pricegroup.com/commentaries_marc%20nemenoff.asp
Contact: 888.908.4310 | mnemenoff@pricegroup.com