Financials: June Bonds are currently 15 lower at 119'30. This morning's ADP Private Sector jobs report showed an increase of 217K versus a pre-report estimate of 170K. This is usually a good indication for the monthly Employment Report which will be released Friday morning. Resistance continues to hold in the 120'24 area (the overnight high was 120'26). If you went short at resistance, either take the short term profit or use a protective buy stop at 120'13. We continue to hold put positions in the June and Sept. 2012 Eurodollars.
Grains: Yesterday May Beans closed 10 cents higher, May Corn 4 higher and May Wheat 6 lower. Over night Beans were 14 higher, Corn 3 higher and Wheat fractionally lower. Today and tomorrow should test resistance in May Corn at the 740-750'0 levels. 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 and Feeder Cattle closed sharply lower. If you went short either of these markets early in the session either take the short term profit or use a protective buy stop at your break even level. If these markets should trade more than 50 lower today, lower your buy stop by at least 50 points.
Silver: May Silver is currently 37 cents higher at 34.78. We remain long the June Gold 1450/1500 call spread. You might consider rolling the 1450 leg of this call spread up to the 1470 strike price at 7.00 or better which would enable you to take the original cost of the spread off the table. This will reduce the overall profit potential but enable you to recoup the original investment.
S&P's: Mar. S&P's are currently 2.50 higher at 1303.50. Yesterday we went short this market slightly higher for the day (the 1328.00 area). If you remain short either take profits or use a protective buy stop in the 1319.00 area. Support is currently the 1294.00 area. Higher energy costs and general trader perception of higher inflation have seemed to turn sentiment to the downside at the moment. Note: Friday's Unemployment Report could change this.
Currencies: As of this writing the Mar. Euro is currently 70 higher at 1.3839, the Swiss 74 higher at 1.0827, the Yen 15 higher at 1.2223 and the Pound 33 higher at 1.6296. As of tomorrow I will be quoting the June contracts as we are within 2 weeks of expiration of the Mar. futures and just a couple of days from Mar. option expirations.
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
Contact: 888.908.4310 | firstname.lastname@example.org