S&P's: June S&P’s are currently 10.00 higher at 917.00. This morning’s Unemployment Report has not had much reaction. On the number the market rallied as high as 922.00 before breaking to present levels. Before the report the market was trading at 919.00. As mentioned yesterday I prefer the short side of the market. No matter how you look at it a decline of 539,000 non- farm jobs is a pretty bad number.
Financials: June Bonds are currently 3 lower at 120’10, the 10 Yr. Notes unchanged, the 5 Yr. Notes 1 lower and the 2 Yr. Notes unchanged at 108’21. Dec. Eurodollars are 2 higher at 98.910. We remain short the 2 Yr. Notes and/or the 5 Yr. Notes with a downside objective of 108’12 on the 2 Yr. Notes. We also remain short the Dec. Eurodollar. As for Bonds I have been recommending being either short out of the money puts or long out of the money calls as I feel this market is oversold at present levels. This mornings Unemployment Report showed a decline of 539,000 non-farm payroll jobs. Expectations were an average estimate of a decline of 620,000. Keep in mind that earlier in the week ADP estimated the decline in the 421,000 area. The initial reaction to the report was a break in the Bonds to the 119’16 level and then a rally to present levels.
Grains: Yesterday Beans were 16 cents lower, Corn 4 higher and Wheat 11 higher. Over night Beans were 10 higher, Corn 3 higher and Wheat 5 higher. We continue to remain long out of the money calls and/or call spreads in July Corn. We also remain long July Wheat. If you remain long Wheat either take profits or raise your protective sell stop to the 561’0 level.
Cattle: Yesterday Live Cattle closed 15 to 20 higher with the nearby June contract closing 15 higher at 82.02. The market rallied late in the session from 70 lower to close higher for the day. On the overnight electronic market, June Cattle is currently 50 higher at 82.52. If you remain long continue to use a protective sell stop at 80.75. If the market trades above 83.30 either take profits or raise your sell stop to the 81.70 level.
Silver: July Silver is currently 8 cents lower at 14.00. The market is acting pretty good having closed above the 14.05 level. I feel this market is going to work higher over time but will wait for a setback below 13.50 before going long.
Currencies: As of this writing the June Euro is 117 higher at 1.3487, the Swiss 79 higher, the Yen 10 lower and the Pound 97 higher at 1.5093. We have once again gone short the Pound (1.5090). The June Dollar Index is currently 71 lower at 83.390. I am willing to try the long side of this market below the 83.300 level.