Financials: Sept. Bonds are currently 10 lower at 151'25 and the 10 Yr. Notes 8 lower at 134'15. Rates continue to make near record lows in the 2.5% area for the 30 Yr. Bond and 1.5% area for the 10 Yr. The market awaits Greek elections mid month and news out of Spain and Italy concerning bank recapitalization. I am still on the sidelines as far as a long term futures position is concerned not willing to fade the fed yet. That being said, I am interested in the short side of the market and am looking at out of the money puts for Sept. expiration. For short term trading I am willing to try the short side of the market with protective buy stops just above the overnight high in the Bonds of 152'16 and 143'29.5 in the 10 Yr. Notes.

Grains: As of this writing the July Corn is trading 13'0 higher at 564'4, July Beans 3'2 higher at 1347'4 and July Wheat 9'4 higher at 621'6. As mentioned in my last few letters I am a willing buyer in July Corn in the 555'0 area but feel the upside is limited to the 580'0 level for the near term. Now that the Dollar seems to have stabilized from it's recent ascent and the Euro having stabilized from it's descent I feel that the Grains will have a firm underpinning. If you remain long July Corn use a protective sell stop at your break even level or take profits on rallies above the 572'0 level. Resistance remains in the 580'0 area.
Cattle: On Friday Aug. LC closed 70 higher at 119.60 and Aug. FC 57 higher at 157.37. I feel that Aug. LC is still rangebound between the 117.00 level and the 122.00 level prefering the long side of the market on sharp breaks.

Silver: July Silver is currently 16 cents lower at 28.35 and aug. Gold 1.00 lower at 1621.00. We remain long Silver. Friday's nearly 60.00 rally in gold has turned the sentiment and technicals up for the near term. I now feel comfortable with the idea of being a buyer on breaks now that support has been firmly established in the 1530-1550.00 area.

S&P's: June S&P's are currently 4.00 higer at 1278.00 after trading as low as 1262.00 overnight. Friday's 34.00 break due to a poor unemployment Report, European debt and slowing Asian (China) economies put the market slightly through the 200 day moving average of 1275.00. For the moment I am looking to the long side of the market on breaks. That being said, near term resistance is the 1287.00 to 1292.00 area.

Currencies: As of this writing the June Euro is currently 58 higher at 1.2471, the Swiss 49 higher at 1.0386, the Yen 10 lower at 1.2795 and the Pound 31 higher at 1.5403. Possible bottoming action in the Euro.

Regards,
Marc
888.908.4310 | 312.264.4310
mnemenoff@pricegroup.com