Financials: Bonds are currently 20 lower at 120'00. Continued stress over Northern Africa, more talk of inflation, especially in food and energy related commodities and continued recovery in the equities market have helped push Bonds lower. Support is now the 119'12 area and resistance remains in the 121'16 area. I prefer the short side of the market. We remain long out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars.
Grains: Yesterday Mar. Beans closed 15 cents higher, Corn 15 higher and Wheat 15 higher. Over night Beans were 5 higher, Corn 1 higher and Wheat 2 lower. Conventional wisdom at this time points to higher markets as news report indicate panic buying over already tight supplies. I am not convinced as yet, but let me say I am not willing to stand in front of a freight train and try the short side of the market. Support in Mar. Beans is currently the 1386'0 area and resistance remains at 1432'0. Support for Mar. Corn is 638'0 and resistance is the contract high of 667'0. I am currently trying to do the combination of selling the May Bean 1260'0 put and 1600'0 for 35-40 cents.
Cattle: Yesterday April Live Cattle closed 125 higher at 114.05 after trading as high as 115.10. If you went short above the 114.25 level I currently recommend a protective buy stop at 115.50. If the market trades below the 113.00 level, either take profits or lower your buy stop to your break even level. Mar. Feeders closed 175 higher at 128.00 after trading as high as 128.57. If you went short above the 127.50 level I recommend a protective buy stop in the 130.00 area. If the market trades below the 126.25 level, either rake profits or lower your buy stop to your break even level. Live Cattle are currently unchanged and Feeder Cattle 75 lower.
Silver: Mar. Silver is currently 12 cents higher at 28.29. I am currently on the sidelines. We remain long the Apr. Gold $1100 puts.
S&P's: Mar. S&P's are currently 10.00 higher at 1292.50. The trend is once again up as the market appears poised to test the contract high in the 1300.00 area. I am not recommending the long side of the market at this time.
Currencies: As of this writing the Mar. Euro is 54 higher at 1.3744, the Swiss 21 higher at 1.0625, the Yen 55 higher at 1.2251 and the Pound 77 higher at 1.6097. Yesterday we once again tried the short side of the market with a protective buy stop at 1.3850 (125 points above my entry level). We remain long out of the money puts in the Euro.
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
Contact: 888.908.4310 | firstname.lastname@example.org