Financials: Mar. Bonds are currently 14 lower at 117'28. Support remains at 117'05 and resistance remains at 119'16. I remain on the sidelines awaiting a rally to resistance to re-enter the market from the short side. We remain long out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars, albeit with a somewhat reduced position as we have taken partial profits.

Grains: Yesterday Beans closed 16 higher, Corn 24 higher and Wheat 6 higher. Over night Beans were fractionally higher, Corn fractionally lower and Wheat 6 lower. Grain rallied yesterday as expected due to the Grain Report. I feel these markets are currently overbought. We remain short a combination of out of the money puts (1300'0) and calls (1600'0) in the May Beans.

Cattle: Yesterday Live Cattle closed moderately lower and Feeder Cattle about 90 lower. We were stop out of recent short positions early in the session yesterday when the market traded above the overnight high. If you remain short, I recommend covering your position.

Silver: Mar. Silver is currently 43 cents lower at 29.85. I remain on the sidelines.

S&P's: Mar. S&P's are currently 9.00 lower at 1310.50. We remain short and will lower our protective buy stop to just above the contract high in the 1323.00 area. If the market trades below the 1306.00 level, lower your buy stop to the 1318.00 area.

Currencies: As of this writing the Mar. Euro is 139 lower at1.3579, the Swiss 103 lower at 1.0340, the Yen 114 lower at 1.2028 and the Pound 62 lower at 1.6030. We remain long out of the money puts in the Euro. We are also short the Pound and will lower our protective buy stop to the 1.6280 level. If the market trades below the 1.5980 level either take profits or lower your buy stop to 25 points below your break even level.

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