Financials: June Bonds are currently 1'09 lower at 137,31 and the 10 Yr. Note 21 lower at 129'15. Needless to say, the 139'00 support level in Bonds has been broken. The equity market responded favorably to the FOMC comments confirming an improving economy in many sectors including jobs and retail sales which improved 1.1% for the month. Of concern is housing which is expected to remain sluggish. The next level of support is the 136'20 area, a level where I will be comfortable going long. Given the Fed's 0-0.25% target for Fed Funds through 2014 I just can't get bearish the Bonds at current levels. That being said, technically I will be willing to trade from the short side of the market on rallies above the 140'00 level.Grains: Yesterday May Corn closed 2'4 higher at 662'0, May Beans 14'2 higher at 1348'6 and May Wheat 2'2 lower at 649'0. Over night Corn traded 3'6 lower, Beans 2'0 higher and Wheat 3'6 lower. We have taken profits on long May Corn positions (yesterday's recommendation was to either take profits or raise protective sell stops to the 658'0 level). We remain short the July Corn 600'0/700'0 strangle (short both the 600'0 put and the 700'0 call).Cattle: Yesterday Apr. LC closed 97 higher at 127.72 and May FC 140 higher at 159.02. We have covered short positions in May FC putting us on the sidelines for the moment. I will be looking to reinstate short biased positions in Apr. LC on rallies above the 129.00 level.Silver: May Silver is currently 83 cents lower at 32.75 and Apr. Gold 50.00 lower at 1645.00. The market has declined sharply in the last 24 hours to the perception of an improving U.S. economy and a strong Dollar. Support remains in the 32.00 area in Silver and the 1630.00 area in Gold for the short term. Long term support in Gold is the 1540.00 level.S&P's: June S&P's are currently unchanged at 1391.00. To say I have misjudged the stergth of this market would be an understatement. I remain short the 1340/1360 call spread. As for futures, I am on the sidelines.Currencies: As of this writing the June Euro is trading 13 lower at 1.3067, the Swiss50 lower at 1.0798, the Yen 109 lower at 1.1967 and the Pound 18 higher at 1.5697. Look for the Yen to support in the 1.18-1.1900 area.Regards, Marc888.908.4310 |