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

 
on April 11 2012 10:14 AM

Financials: June Bonds are currently 23 lower at 140'22 and the 10 Yr. Notes 11 lower at 131'08. Spanish and Italian debt are once again an issue causing a flight to safety yesterday pushing Bonds to an inter-day high of 141'27 before backing off to current levels. We remain short the June Bond 142'00/140'00 call spread. In spite of yesterday's high I still feel the market will see resistance just above the 141'00 level. Support remains at 139'14 for the near term. Grains: Overnight May Corn traded 2'4 higher at 637'2, May Beans fractionally higher at 1426'6 and May Wheat 5'6 higher at 637'2. Yesterday we covered short May and July Corn positions. Cattle: Yesterday Live and Feeder Cattle closed sharply lower in sympathy with an overall sell off in Equities, Energy and Grains. Over night these markets are moderately higher. I am a buyer on breaks for short term trades. As for position trading, I am on the sidelines as my downside objectives have been met. Silver: May Silver is currently 7 cents lower at 31.61 and June Gold 4.00 lower at 1656.00. I will be looking to the long side of Silver below 30.80 and the long side of Gold below 1580.00 if the market allows. S&P's: June S&P's are currently 9.00 higher 1366.00. Yesterday the market broke through near term support of 1366.00 and made lows of in the 1352.00 area as the market once again feared rising rates in European (Spain and Italy) debt instruments. I am on the sidelines having covered all short in the money call spread positions over the last two sessions. Currencies: As of this writing the June Euro is currently 56 higher at 1.3138, the Swiss 45 higher at 1.0942, the Yen 45 lower at 1.2344 and the Pound 63 higher at 1.5916. I am currently on the sidelines but continue to hold a short bias on the Euro and the Yen. Regards, Marc 888.908.4310 | 312.264.4310 mnemenoff@pricegroup.com

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