Financials: June Bonds are currently 1 higher at 117'11. Resistance remains in the 118'00 area. I continue to prefer the short side of the market. If you establish a short position consider selling an out of the money put three strike prices below the market as a way of collecting some premium and also providing some protection against adverse price movement. This morning's non-farm productivity report showed an increase of 6.9% versus expectations of 6.5%. Weekly jobless claims were 469,000, down by 29,000. The market had little reaction to these numbers.
Grains: Yesterday May. Beans closed 1 lower, Corn 5 higher and Wheat 11 higher. Over night Beans were 6 lower, Corn 3 lower and Wheat 6 lower. Support and resistance in May Corn is currently 368'0 to 391'0. Treat as a trading market. Support and resistance for May Beans is currently 935'0 to 984'0. I favor the long side of the market on a break to support. The May Beans 880'0/1000'0 strangle closed at 26'4. I will take profits this week at 21'0 if the market allows.
Cattle: Yesterday Apr. Cattle closed 12 higher at 92.90. We currently have no Cattle positions. Yesterday open interest went down 5,000+ in the Apr and up 2,600+ in June and 1300+ in Aug. Over all open interest went up by 611. As mentioned earlier in the week I expect a large amount of rolling of positions from Apr. into the deferred contracts over the next 2 weeks. Spreaders take note. A firm live and dressed beef market is establishing support below the market. I am not yet ready to go long as I feel the market is a bit ahead of itself, but will be watching for buying opportunities on a sharp break.
Silver: May Silver is currently 5 cents lower at 17.30. Those holding long positions should consider taking partial profits. We remain long out of the money call spreads in the July contract.
S&P's: Mar. S&P's are currently 1.00 higher at 1119.50. We remain long out of the money June puts as portfolio insurance.
Currencies: As of this writing the Mar. Euro is 54 lower at 1.3647, the Swiss 38 lower at .9327, the Yen 83 lower at 1.1231 and the Pound 11 higher at 1.5104. The market is still concerned over the debt situation in Greece, Spain, Portugal, etc. The Mar. Dollar Index is currently 25 higher at 80.26. I remain long out of money puts and/or put spreads in the June Yen. I
will be a seller in the June Euro above the 1.3800 level if the market allows.