The Nemenoff Report Bonds Lower, S&P's higher, Silver Higher

By Roger Baettig | June 29 2012 10:20 AM

Financials: Sept. Bonds are currently 1'26 lower at 148'01 and the 10 Yr. Note 23 lower at 133'07. Yesterday saq the Bonds rally just about a full point as a result of the Supreme Court upholding the Individual Mandate section of the Health Care bill. This was seen as negative for the economy being an additional tax as interpreted by the Court. Over night all is forgiven as the E.U. has pledged to use bailout funds to aid Spanish and Italian banks et.al., removing some of the flight to safety premium. Near term support remains at 147'26 and resistance has been lowered once again to the 149'18 level. Longer term support is the 146'15 area. If the market should break below the 147'00 level my bias will turn to the long side of the market keeping operation twist in mind.

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Grains: July Corn is currently 9'2 higher at 661'2 and Dec. Corn 7'0 higher at 639'2. Nov. Beans are currently 17'0 higher at 1420'4 and Dec. Wheat 2'2 higher at 769'0. This morning's Reports.

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Slightly more acreage for than expected for Corn and Wheat, neutral for Beans. The initial response was a 10 cent break in Corn followed short by a rally to 20 cents higher for the day. For the moment I am looking to trade and hedge Dec. Corn from the short side on rallies above the 652'0 level with a 15 cent protective stop.

Cattle: Aug. LC is currently10 lower at 119.25 and Aug. FC 50 lower at 149.95. If you have been a buyer on breaks in Aug. LC I encourage you to take profits and once again start looking ot the short side of the market on further rallies.

Silver: Sept. Silver is currently $1.04 higher at 27.29 and Aug. Gold 45.00 higher at 1595.00. I believe the market has rallied because f the E.U.'s apparent willingness to come to the aid of Spanish and Italian banks. The fear has been if there is no aid we might see some Central Bank's selling of Gold. We remain lightly long Silver.

S&P's: Sept. S&P's are currently 20.00 higher at 1343.00. Support in the 1403.00 area has held. As mentioned, actions that may be taken by the E.U. has rallied the market overnight. If long, take profits otherwise stand aside until Monday.

Currencies: As of this writing the Sept. Euro is currently 244 higher at 1.2680, the Swiss 196 higher at 1.0564, the Yen 24 lower at 1.2582 and the Pound 187 higher at 1.5680. We are on the sidelines coming in this morning. If the Euro should rally above the 1.2800 level I will once again be looking to the short side of the market.

Regards, Marc 888.908.4310 | 312.264.4310 mnemenoff@pricegroup.com