Financials: Mar. Bonds are currently 14 lower at 141'28 and the 10 Yr. Note 6 lower at 130'31. Bonds are once again approaching support at 140'16 as equities strengthen and he Dollar weakens. We continue to hold the long 5 Yr. Note/ short 10 Yr. Note spread and will take profits today as my objective of 7'12 premium the 10 Yr. Note has been met.Grains: Yesterday Mar. Beans closed 1'0 lower, Mar. Corn 2'0 lower and Mar. Wheat 6'0 lower. Over night Beans were 6'0 higher, Corn 5'6 higher and Wheat 3'6 higher. We remain on the sidelines. The market awaits tomorrow's supply/demand report and is beginning to focus on the late Mar. planting intentions report, where it is expected that acreage will be huge as evidenced by the 70'0 cent discount on Dec. Corn (576'4) to old crop contracts.Cattle: Yesterday Apr. LC closed 107 higher at 128.57 and Mar. FC 87 higher at 155.00. My bias remains negative. Basically, I feel that demand for beef is going to suffer because of consumer resistance at historically prices. I feel that if you are a multi contract trader it is time to start putting on a small short position. Example: If you usually trade 5 contracts, sell 1 or 2.Silver: Mar. Silver is currently 6 cents higher at 34.38 and Apr. Gold 2.00 lower at 1746.00. I still feel that Silver has quite a bit of technical resistance in the 34.50-35.00 area and Gold between 1760-17676. I must admit that yesterday's rally off of recent lows took me by surprise. I am on the sidelines.S&P's: Mar. S&P's are currently unchanged at 1344.50. Yesterday the market traded slightly above resistance of 1344.00 (the overnight high was 1348.25) but not enough to make me want to be long above current levels. I still feel this market is range bound with support now at 1330.00. I caution against buying into rallies, I recommend waiting for breaks.Currencies: As of this writing the Mar. Euro is 10 higher at 1.3258, the Swiss 10 lower at 1.0953, the Yen 20 lower at 1.3014 and the Pound 8 lower at 1.5883. The market awaits decisions on Greek debt. We remain long out of the money puts in the Euro and the Yen.Regards, Marc888.908.4310 |