Financials: Mar. Bonds are currently steady at 118'03. Support is currently the 117'05 area and resistance the 119'16 area. I am currently on the sidelines awaiting a strong rally to once again trade this market from the short side. Of note: China has once again raised rates. We remain long out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars.
Grains: Yesterday Beans closed 8 lower, Corn 3 lower and Wheat 5 higher. Over night Beans were 8 lower, Corn 5 lower and Wheat 5 lower. We continue to hold the combination of short the May Beans 1300'0 put and short the May Beans 1600'0 call. Yesterday we adjusted our position by buying in our short 1260'0 put and selling the 1300'0 put for 5'2 premium the 1300'0 put. The Grains at this time are starting to show signs of an overbought situation.
Cattle: Yesterday Live Cattle closed 100+ lower and Feeder Cattle moderately lower. Over night the market is trading slightly lower. If you remain short Apr. Live Cattle either take profits or lower your buy stop to the 113.00 level. If you remain short Mar. Feeder Cattle lower your buy stop to the 126.00 level.
Silver: Mar. Silver is currently 28 cents higher at 29.62. I remain on the sidelines having missed this current leg up. We remain long the Apr. Gold $1100 put which we bought for under $2.00 and is currently at 0.40.
S&P's: Mar. S&P's are currently 0.50 higher at 1316.25. The market has now made a minor double top in the 1320.00 area. I feel that this market is now worth a trade from the short side with a risk of new contract highs above the 1326.00 level. If you are used to trading multiple contracts I recommend selling a smaller than usual position as this trade is trying to pick a top. Support is currently 1307.00 and resistance 1320.00.
Currencies: The Mar. Euro is currently 40 higher at 1.3620, the Swiss 16 lower at 1.0458, the Yen 25 higher at 1.2178 and the Pound 76 lower at 1.6039. We have been stopped out of our short Euro futures position as the market has traded above yesterday's recommend protective buy stop of 1.3615. I remain negative to this market and still hold out of the money put options. I also like the short side of the British Pound.
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter
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