Financials: Bonds are currently 13 lower at 124’26, the 10 Yr. Notes 7 lower, the 5 Yr. Notes 2 lower and the 2 Yr. Notes unchanged at 108’18.2. Dec. Eurodollars are currently 5 higher at 98.720, an area where I am once again willing to try the short side of the market. We remain short the 2 Yr. Notes and/or the 5 Yr. Notes and will cover this position if the 2 Yr. Notes trade below the 108’12.0 level. I remain on the sidelines in the Bonds.
Grains: Yesterday Beans were 8 cents lower, Corn 7 higher and Wheat 12 higher. Over night Beans were 3 lower, Corn 2 lower and Wheat unchanged. We remain long out of the money calls and/or call spreads in July Corn. We continue to remain long both July Corn and Wheat futures. Given yesterday’s rally we are raising our sell stop in July Corn to the 373’0 level and in July Wheat to the 521’0 level.
Cattle: Yesterday Live Cattle closed 17-35 higher with the June contract closing 32 higher at 83.47. The market is currently slightly higher. I continue to remain on the sidelines.
Silver: May Silver is currently 14 cents higher at 12.89. If you remain long either take profits or raise your sell stop to the 12.23 level. All of my short term objectives have been met. Longer term this market needs to close above the 13.05 level to give me confirmation that there is the possibility of further upside potential.
S&P's: June S&P’s are currently 6.00 higher at 854.00. Near term support and resistance levels of 832.00 and 856.00 have been met over the last 2 trading sessions. Later this morning there will be the release of New Home Sales and some information on the TARP recipients “Stress Tests”. At the moment I favor the short side of the market in the 865.00-875.00 area if the market allows.
Currencies: As of this writing the June Euro is 165 higher at 1.3273, the Swiss 120 higher, the Yen 90 higher and the Pound 31 higher. The June Dollar Index is currently 91 lower at 84.85. If you remain long the Euro either take profits or raise your protective sell stop to the 1.3150 level. If you remain short the June Dollar Index, either take profits or lower your buy stop to the 85.32 level.