Financials: Mar. Bonds are currently 2 lower at 120'12. The market continues its sideways pattern between 119'18 and 122'08. Treat as a trading market between support and resistance. We remain long out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars.

Grains: Yesterday Mar. Beans closed 9 lower, Corn 10 higher and Wheat 20 higher. Over night Beans were 17 higher, Corn 6 higher and Wheat 14 higher. Support remains at 1394'0 for Mar. Beans with the market currently in resistance at 1432'0. Support for Mar. Corn is currently 638'0 with no resistance as the market continue to make new contract highs.

Cattle: Yesterday Live and Feeder Cattle closed moderately higher. For the first time in weeks these markets have shown a bit of a chink in its armor retreating from 200+ point gains early in the session and actually trading lower for the day before closing only moderately higher. I remain on the sidelines. Current prices are probably justified by the reduction in herd, but to be honest, the prices are too far out of my realm of experience to pursue the long side of the market.

Silver: Mar. Silver is currently 38 cents higher at 29.30. We remain long out of the money call spreads. We also remain long the Apr. Gold 1100 put.

S&P's: Mar. S&P's are currently 4.00 lower at 1291.00. Positive quarterly earnings reports continue to add upward momentum to this market. Support is currently 1282.00 and resistance 1300.00

Currencies: As of this writing the Mar. Euro is trading 128 higher at 1.3508, the Swiss 37 higher at 1.0423, the Yen 70 higher at 1.2187 and the Pound 16 higher at 1.5985. Yesterday we went short the Euro in the 1.3440 area. The market consequently broke 90 points to the 1.3350 area providing a profit taking opportunity. If you remain short use a protective stop at the 1.3620 level. If the market gets back to your break even level either liquidate or lower your buy stop to the 1.3560 area

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