Financials: Bonds are currently 24 lower at 118'15. Support is currently 118'12 and resistance the 120'00 area. I am currently on the sidelines in Bonds but will be a willing seller above the 120'00 level if the market allows. We remain long out of the money puts and/or put spreads in the June and Sept. 2012 as a long term speculation that rates will rise over the next 18 months.

Grains: On Friday May Beans closed 2 cents higher, Corn 8 lower and Wheat 8 higher. Over night Beans were 2 higher, Corn 2 higher and Wheat fractionally higher. May Corn still has resistance in the 740'0 area. We remain short the combination of May Corn 660'0 puts and May Corn 740'0 calls.

Cattle: On Friday Live Cattle closed slightly lower and Feeder Cattle slightly higher. I still have a negative bias to these markets and will pursue the short side of the market with protective buy stops 250 points above our entry level.

Silver: May Silver is currently 1.02 higher at 36.55. If you are long this market I recommend having an exit strategy in mind, i.e., pick a level to have a protective sell stop. Gold is currently 9.00 higher at 1438.00. We remain long the June Gold 1470/1500 call spread.

S&P's: Mar. S&P's are currently 4.75 higher at 1325.00. We remain short with a smaller than usual position.

Currencies: As of this writing the June Euro is trading 12 higher at 1.3976, the Swiss unchanged at 1.0804, the Yen 25 higher at 1.2178 and the Pound 2 lower at 1.6241 (all currency quotes are for the June contract). We continue to hold a bearish posture on the Euro. I'm watching news out of Greece, Italy, Spain and Portugal once again.

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