Financials: Jun. Bonds are currently 10 lower at 118'24. On Friday we were able to do the NOB (Notes over Bonds) spread, long the 10 Yr. Notes/ short the Bonds at 1'02 premium the Bonds (currently at 1'03). We also tried to trade the Bonds from the short side of the market only to be stopped out at the 119'02 level. My objective on this spread for the short term is 23 points premium the Bonds which would be an 11 point profit. The temporary resolution of the credit situation in Greece has somewhat eased the flight to quality for the moment. We still remain long the Jun. Bond 114'00 put. Near term support is currently 117'28 and resistance 119'04.
Grains: On Friday Beans were 3 cents higher, Corn 5 higher and Wheat 7 higher. Over night Beans were 5 lower, Corn fractionally higher and Wheat up about 2. We continue to hold out of the money call spreads in Nov. Beans. On Friday we were able to do the Sept. Corn 420'0/340'0 strangle (selling both the 420'0 call and the 340'0 put) at 24'4 cents. To be honest this spread will be like watching paint dry over the coming weeks but over the next few months should prove profitable if the Sept. Corn stays between 340'0 and 420'0.
Cattle: On Friday both Live and Feeder Cattle closed slightly higher. Continue to treat Jun. Cattle as a trading market between 92.70 and 95.70. Producers should continue to hold out of the money puts for price protection and consider selling out of the money calls if the Jun. or Aug. contracts trade above the 95.50 level.
Silver: July Silver is currently 15 cents higher at 18.79. As mentioned Friday, this market has broken out to the upside and I recommend going long on breaks.
S&P's: Jun. S&P's are currently 5.50 lower at 1189.00. On Thurs. and Friday I recommended the short side of the market from the 1202.00 area with a protective buy stop above the contract high of 1216.75. Near term support at the time was the 1188.00 level which has since been violated with the Fri. low in the 1183.00 area. If you remain short either take the short term profit or lower your protective buy stop to the 1196.00 level. If the market trades below 1181.00 lower your buy stop to the 1191.00 level or take profits. The next level of support is the 1177.00 level.
Currencies: As of this writing the Jun. Euro is trading 78 lower at 1.3230, the Swiss 51 lower at .9239, the Yen 66 lower at 1.0583 and the Pound unchanged at 1.5272. Temporary resolution of the Greek credit crisis has put some pressure on the Euro this morning given the 146 Billion Dollar commitment by the IMF and the EU. How this will play out in the short term is anybody's guess at this time. For this reason I recommend the sidelines. As mentioned over the last few weeks I have been watching the Yen and recommending the short side of the market on rallies. This market is close to the Apr. 2nd low of 1.0558 and I recommend covering any short positions. The Jun. Dollar Index is currently 31 higher at 82.30, once again near resistance at 82.50.