Financials: Bonds are currently 15 lower at 117'03. Support continues at 116'23 and resistance at 118'22. Continue to treat as a trading market between support and resistance. A stronger Dollar and higher equities this morning are adding a bit of downside pressure to the interest rate complex.
Grains: Over night Mar. Beans were 10 cents higher at 955'6, Corn 3 higher at 364'4 and Wheat 8 higher at 494'4. I am still willing to sell the May 880'0/1000'0 strangle at 35'0 if the market allows. This combination settled at about 37'0 on Friday. Support remains at 351'0 for Mar. Corn and resistance 372'0. I continue to prefer the long side of the market on breaks. Support for Mar. Beans is currently 927'0 and resistance 971'0. I prefer the short side of the beans on rallies to resistance.
Cattle: Apr. Live Cattle are currently 67 higher at 91.45. I am still looking to be a seller in this market in the 92.00-93.00 area if the market allows. Technically this area would be a test of the market highs made last June between the 5th and the 11th.
Silver: Mar. Silver is currently 36 cents higher at 15.81. The market has now seen about a 25% recovery from the highs made in Dec. of about 19.50 and the recent low of 14.60. A one third recovery would put the market in the 16.20 area. I will be willing to try the short side of the market at this level if the market allows for a short term trade (1-4 days). We remain long out of the money call spreads on the July contract.
S&P's: Mar. S&P's are currently 3.50 higher at 1082.50. On Friday we were stopped out of any remaining short positions when the market traded above the 1068.00 level. Near term support is currently 1060.00 and near term resistance 1088.00. I will once again try the short side of the market on a rally to resistance.
Currencies: As of this writing the Mar. Euro is 34 higher at 1.3651, the Swiss 15 higher at 93.05, the Yen 21 lower at 1.1098 and the Pound 28 lower 1.5636. I continue to feel that the Euro is still over sold. For those of you with a high risk tolerance and looking for a short term trade consider trying the long side on breaks in the Euro with a protective sell stop below 1.3568. As for a position trade I am patiently waiting for a rally above the 1.3880 level to re-enter this market from the short side. The Mar. Dollar Index is currently 17 lower at 80.26. I will be a buyer below the 79.30 level if the market allows.