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

Financials: Mar. Bonds are currently 18 lower at 120'14. The market continues in a sideways pattern between 119'18 and 122'08. Continue to 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. Of note: Our Eurodollar options have given back some of our profits due to a decline in volatility over the last couple of weeks and a stabilization of prices. I still feel that as a long term position we are on the right side of this market.

Grains: Yesterday Mar. beans closed 1 cent lower, Mar. Corn 18 lower and Mar. Wheat 4 higher. Over night Beans were 8 lower, Corn 6 lower and wheat 6 lower. Support remains at 1394'0 in Mar. Beans and resistance 1432'0. Support for Mar. Corn remains in the 638'0 area (the market was at 635'0 this morning) and resistance has developed in the 662'0 level. If current levels in corn do not hold the next level of support will be the 616'0 level. We remain short the Mar. Bean 1300'0 strangle which is currently trading at 123'0. My objective remains at 100'0.

Cattle: Yesterday Live and Feeder Cattle closed about 50 lower. These markets are beginning to peak my interest for a short sale on rallies now that these markets provided us with a blow-off high on Monday in the 130.00 area for Mar. Feeder Cattle and the 116.00 area for Apr. Live Cattle.

Silver: Mar. Silver is currently $1.05 lower at 27.75. We remain long out of the money call spreads on the Mar. contract. I will be interested in going long Futures below the 27.50 level. We also remain long Apr. Gold 1100 puts which should increase in value today as Gold is $20.00 lower at this time.

S&P's: Mar. S&P's are currently 5.00 lower at 1274.00. Yesterday's support of 1282 has been broken putting support back at the 1256.00 level. Resistance is currently the 1287.00 level.

Currencies: As of this writing the Mar. Euro is currently 11 lower at 1.3442, the Swiss 77 lower at 1.0397, the Yen 100 lower at 1.2090 and the Pound 65 lower at 1.5915. If you remain short the Euro, lower your buy stop to the 1.3560 level. Also, I am interested in out of the money puts on the Mar. Euro.

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