Financials: Mar. Bonds are currently 24 lower at 119'31. This morning's GDP number saw the economy growing at an annual rate of 3.2% slightly below the average guesstimate of 3.5%. The initial reaction was a slight rally to the 120'11 level then a break to current levels. Near term support remains at 119'16 with longer term support at 118'22. Resistance remains in the 121'14 area. I am on the sidelines in Bonds at the moment. We remain long out of the money puts/and or put spreads in the June and Sept. 2012 Eurodollars.

Grains: Yesterday mar. Beans closed 14 cents higher, Mar. Corn 7 lower and Mar. Wheat 10 lower. Over night Beans were 2 lower, Corn 2 higher and Wheat 4 lower. Yesterday we liquidated all recent long positions putting us on the sidelines until next week.

Cattle: Yesterday Apr. Live Cattle saw little change while Mar. Feeder Cattle closed about 50 lower. Over night these markets are trading 25-50 higher. I remain on the sidelines, but favor the short side of Apr. Cattle above 114.25 and the short side of Mar. Feeders above the 127.50 level if the market allows.

Silver: Mar. Silver is currently 23 cents lower at 26.79. Over night this market traded as low as the 26.30 level. If you have not been stopped out of a recent long position from the 27.50 level I still recommend using a sell stop $1.00 below your entry level. We remain long the Apr. Gold $1100 put.

S&P's: Mar. S&P's are currently 2.00 higher at 1298.00, new contract highs. I remain neutral to friendly. Support is currently 1284.00 and resistance 1305.00.

Currencies: As of this writing the Mar. euro is 29 lower at 1.3793, the Swiss 20 higher at 1.0597, the Yen 76 higher at 1.2154 and the Pound 30 lower at 1.5900. Yesterday we went short the Mar. Euro in the 1.3730 with a 100 point risk. If you are just looking for a short term trade, take the money. If you are looking for a long term trade, I recommend using a buy stop at 1.3860 and lowering it to the 1.3710 level if the market trades below the 1.3628 level.


Marc Nemenoff
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
Contact: 888.908.4310 |