Financials: June Bonds are currently 24 lower at 119'19. Support is currently 118'14 and resistance the 120'24 area. I still have a negative long term bias to this market and prefer the short side on rallies. We remain long out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars.
Grains: Yesterday May Beans closed 10 cents lower, Corn 9 higher and Wheat 6 higher. Over night Beans were 6 higher, Corn fractionally higher and Wheat 3 lower. Corn is approaching resistance in the 740-750'0 area. We continue to hold the combination of short the May Corn 660'0 put and short the May Corn 740'0 call.
Cattle: Yesterday Live Cattle closed 130 lower and Feeder Cattle slightly higher after both of these markets traded sharply higher early in the session. I am now taking a somewhat negative posture to these markets. My thinking being that if energy costs continue to rise there will be less disposable income to spend on premium meats such as beef and the consumer may turn to less costly meats such as chicken and pork. I will be a seller on rallies in either Apr. or June Cattle with protective buy stops above the contract highs.
Silver: May Silver is currently 55 cents higher at 34.38. Gold is currently 12.00 higher at 1422.00. We remain long the June Gold 1450/1500 call spread.
S&P's: Mar. S&P's are currently 1.00 higher at 1327.00. Over night this market traded as high 1336.50 and now looks about to trade lower for the day. On Friday we were stopped out of recent short positions as the market traded above the 1314-1318.00 level. I am now willing to once again trade this market from the short side at current levels. Near term support is the 1316.00 level. If this level is penetrated the next level of support is the 1306.00 level.
Currencies: As of this writing the Mar. Euro is 35 higher at 1.3836, the Swiss 9lower at 1.0759, the Yen 54 lower at 1.2180 and the Pound 24 higher at 1.6292. We have been stopped out of our short Euro position but I still feel this market is headed lower long term.
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
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