Financials: Mar. Bonds are currently 11 lower at 119'03. The only news that I can see at the moment is that China once again raised bank reserve requirements as a means of fighting potential inflation and an overheated housing market. The Bonds appear to be holding the 119'16 resistance area at this time. Support remains at 118'12. I suspect the market to hold a tight range today as traders even up before the 3 day weekend to observe President's Day on Monday. We continue to hold our put positions in the June and Sept. 2012 Eurodollars.
Grains: Yesterday Beans closed 38 cents higher, Corn 22 higher and Wheat 13 higher. Over night Beans were 20 lower, Corn 6 lower and Wheat 12 lower. March options expire today and I suspect the market could be quite volatile as prices come near to closing at option strike prices. We continue to hold the combination of short the May Corn 660'0 put and 740'0 call.
Cattle: Yesterday Live Cattle close nearly 100 higher and Feeder Cattle slightly higher. I remain on the sidelines.
Silver: Mar. Silver is currently 12 cents higher at 31.69. We do not have a silver position at this time. We remain long the June Gold 1450/1500 call spread.
S&P's: Mar. S&P's are currently steady at 1338.00. The market penetrated resistance of 1337.00 with this morning's high of 1339.75. I am on the sidelines until Tues. (after the 3 day weekend).
Currencies: As of this writing the Mar. Euro is unchanged at 1.3610, the Swiss 17 lower at 1.0517, the Yen 7 higher at 1.2007 and the Pound 61 higher at 1.6232. We remain long out of the money puts and/or put spreads in the Euro.
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
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