Financials: Jun. Bonds are currently 3 lower at 115'21. Yesterday the market broke sharply despite a sharply higher dollar. It has been the case in recent monts that as the Dollar strengthened Bonds rallied. Yesterday the market diverted from this scenario for some of the following reasons: Poor reception for the 5 Yr. Note auction. Fear that the market is finally realizing that down the road there will continue to be a flood of treasury offerings that the market may find a hard time absorbing. A widening yield curve. All that being said, if you remain short the Bonds or the combination of short Bonds and short the Jun. Bond 115'00 put, take profits and stand aside for a day or time and take the time to reassess the market given the sharp break in the last few sessions.
Grains: Yesterday May Beans closed 9 cents lower, Corn 2 higher and Wheat 1 lower. Over night Beans were 4 cents higher, Corn fractionally lower and Wheat 2 higher. We have been stopped out of a long Corn position. Long hedgers in Corn (users) may want to start buying for their short term needs. We remain short the July bean 880'0/1080'0 strangel which closed at 27'6.
Cattle: Yesterday Apr. Cattle closed 2 higher, Jun. 50 higher and Aug. 67 higher. The long Aug./ short Apr. is now at a small loss after gaing back 75 points in the last few sessions to close at 505 premium the Apr. My objective is the 400 point level premium the Apr. Hedgers who are long puts may consider rolling your position into lower strike prices. Hedgers who are short futures may consider covering those futures and putting on strategy of a combination of long out of the money puts and short out of the money calls.
Silver: May Silver is currently 15 cents higher at 16.79. Support remains in the 16.30 area and resistance continues at 16.45.
S&P's: Jun. S&P's are currently 4.50 lower at 1169.00. We remain short futures and short the Jun. 1040 puts.
Currencies: As of this writing the Jun. Euro is 21 higher at 1.3360, the Swiss 24 higher at .9359, the Yen 14 lower at 1.0849 and the Pound 35 higher at 1.4918. If you remain long the Jun. Yen 1.0600 put, take advantage of the break over the last 2 sessions to take some profits off the table. You can do this by either selling the 1.0300 or 1.0400 put against your current position and collect the premium or roll your 1.0600 put into a lower strike price.