Financials: Mar. Bonds are currently 13 lower at 141'28 and the 10 Yr. Note 4 lower at 130'12. This morning's Unemployment Report showed an increase in non-farm payrolls of 200K vs. an average expectation of 155K. At current prices my bias on the Bonds has turned neutral, meaning I'm willing to treat the Bonds as a trading affair from both sides of the market between 141'10 and 143'06. We continue to hold the long 5 Yr. Note/ short 10 Yr. Note spread, currently trading at 7'10 premium the 10 Yr. Note. I will be willing to take profits in the 7'05 area.
Grains: Yesterday Mar. Beans closed 21 cents lower at 1209'0, Mar. Corn 15 lower at 643'4 and Mar. Wheat20 lower at 629'2. A strong Dollar and some percipitation forecast for S. American growing regions had the expected result. Over night Beans were 7 higher, Corn 4 higher and Wheat 6 higher. If you remain long Mar. Corn continue to use a protective sell stop in the 638'0 area (recent low is 639'4).
Cattle: Yesterday Feb. LC closed 67 points lower at 120.95 and Mar. FC 30 higher at 150.85. Over night these markets are slightly higher with Feeder Cattle gaining on Live cattle. My bias remains negative, but we currently have no speculative positions. I will however consider going short Feb. LC above the 122.50 level if the market allows. You also might consider going short the Feb. LC 124 call above 160 points (currently at 80 points). Producers should be looking for hedging opportunities.
Silver: Mar. Silver is currently 5 cents lower at 29.22 and Feb. Gold 4.00 higher at 1624.00. Watch for resistance in Feb. Gold in the 1630-1640 level.
S&P's: Mar. S&P's are currently 5.00 higher at 1278.00. I continue to look at this market as a trading affair form the low 1260's to the low 1280's. I am watching carefully the 1289.00 level which was the high made the week of Oct. 21, 2011.
Currencies: As of this writing the Mar. Euro is 40 lower at 1.2752, the Swiss 12 lower at 1.0490, the Yen14 higher at 1.2984 and the Pound 37 lower at 1.5438. The Dollar Index at 81.42 is on a more than 11 month high and the Euro on a 12 month low. We remain long out of the money puts in the Euro and the Yen. If you are long puts for Mar. expiration in the Euro with a strike price above 1.2400 I suggest rolling down to 1.2400 or lower to take advantage of recent price declines. Something new: Yesterday we went long a Mar. mini Natural Gas for a long term position.
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