Financials: Jun. Bonds are currently 4 lower at 115'10. We are currently on the sidelines after covering a recent short position. At some point in time I will be looking to either buy out of the money puts or put spreads as I feel this market will eventually be headed lower. Another strategy will be to put on the long 10 Yr. Note/ short Bond spread. On Friday we will have a montly Unemployment Report. Early indications show there will be an increase in non-farm payrolls of more than 150,000.
Grains: On Friday Beans were 9 cents higher, Corn 1 higher and Wheat 1 lower. Over night Beans were 7 higher, Corn 1 higher and Wheat 3 higher. I will be looking to go long May Wheat under the 457'0 level if the market allows. We remain short the July Bean 880'0/1080'0 strangle which closed out the week at 26'6. the first planting intentions report will be later this week.
Cattle: On Friday Apr. Cattle closed 72 lower at 94.02, Jun. 55 lower at 91.57 and Aug. 82 lower at 89.25. During the trading seesion on Friday the market gave ample opportunity to liquidate the long Aug./short apr. spread under the recommended 445 premium Apr. level (the spread reportedely traded as low as 425). I continue to recommend taking the small profit on this spread below the 445 level. Icontiue to recommend that hedgers who are long puts roll their positions to lower strike prices. Hedgers who are short futures should consider covering their positions and putting on a combination of long out of the money puts and short out of the money calls.
Silver: May Silver is currently 36 cents higher at 17.27. I have no new recommendation at current levels. I will be looking to the long side of the market on a break below the 16.30 level.
S&P's: Jun. S&P's are currently 3.50 higher at 1167.00. We remain short futures and short the Jun. 1040 put.
Currencies: As of this writing the Jun. Euro is 50 higher at 1.3450, the Swiss 14 higher .9393, the Yen unchanged at 1.0813 and the Pound 71 higher at 1.4957. We continue to hold put positions in the Jun. Yen. I recommend taking profits on all Yen positions (puts) if the market trades below the 1.0750 level.