Financials: Mar. Bonds are currently 2 lower at 120'27. Continue to treat as a trading market between 119'18 and 122'08. We remain long out of the money puts and/or put spreads in June and Sept. 2012 Eurodollars.

Grains: This morning Beans are 3 lower, Corn 6 higher and Wheat 14 higher. Support remains at 1394'0 in Mar. Beans and resistance remains at 1432'0. Support for Mar. Corn has risen to the 634'0 level with the market continuing to make new contract highs. We remain short the Mar. Beans 1300'0 strangle.

Cattle: Live and Feeder Cattle are once again at or near contract highs this morning. I remain on the sidelines.

Silver: Mar. Silver is currently 50 cents higher at 28.82. We remain long out of the money call spreads on the Mar. contract. I will be a buyer of futures below the 27.50 level if the market allows.

S&P's: Mar. S&P's are currently 1.00 lower at 1288.50. Support is currently 1268.00 and as stated over the last few sessions I feel the market is currently in resistance.

Currencies: As of this writing the Mar. Euro is trading 63 higher at 1.3417, the Swiss 90 higher at 1.3443, the Yen 73 higher at 1.2127 and the Pound 140 higher at 1.6014. Talk that Europe will support individual countries with sovereign debt has pushed the Euro into resistance in the 1.3450 area. I am once again willing to try the short side of this market at current levels for a short term trade of a few days. We have been stopped out of our remaining short Swiss position.

I will hosting a free webinar on Using and Understanding Leverage on Wednesday January 19th at 3:30 pm(Central)

You can use this link to enroll: http://onlinetradercentral.com/presenter_3RT5A6.asp

Regards,

Marc Nemenoff
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
Web: http://www.pricegroup.com/commentaries_marc%20nemenoff.asp
Contact: 888.908.4310 | mnemenoff@pricegroup.com