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

By Roger Baettig | May 10 2012 10:23 AM

Financials: June Bonds are currently 19 lower at 143'28 and the 10 Yr. Notes 8 lower at 132'21. The market may be topping out. At least it now has a level of resistance at yesterday's highs of 145'08 in the Bonds and 133'08.5 in the 10 Yr. Notes. We remain short in the money call spreads. I am now willing to trade from the short side with protective buy stops just above yesterday's highs.

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Grains: This mornings Supply/Demand Report showed the following: U.S. carryout for Beans 0.145 billion bushels vs. pre report estimates of 0.170 billion bushels. Corn 1.881 BB vs. 1.704BB. Wheat 0.735BB vs. 0.805BB. World carryover showed similar results. Less Beans and more Corn than expected. The early calls are 30 cents higher in beans and 5-10 cents lower in corn. I am on the sidelines coming in this morning. I will be looking for July Corrn to support in the 580'0 area.

Cattle: June LC are currently 50 higher at 117.10 and May FC 35 higher at 151.00. If you remain long either take profits or raise your sell stops to 50 points below the market.

Silver: July Silver is currently 20 cents lower at 29.00 and June Gold 3.00 higher at 1597.00. I am a cautious buyer on breaks.

S&P's: June S&P's are currently 10.00 higher at 1361.00. This mornings Weekly Jobless Claims showed a decline of 1,000 vs. expectations of an increase of of 5,000. The market continues to support in the mid 1340's. If you remain long either take profits or raise your sell stop. Resistance is currently the 1365.00-1370.00 area.

Currencies: As of this writing the June Euro is trading 21 higher at 1.2970, the Swiss 15 higher at 1.0800, the Yen 40 lower at 1.2514 and the Pound 35 higher at 1.6175. If you remain short the Euro either take profits or ue a close protective buy stop.

Regards, Marc 888.908.4310 | 312.264.4310 mnemenoff@pricegroup.com