Financials: Bonds are currently 15 lower at 128’22, the 10 Yr. Notes 12 lower, the 5 Yr. Notes 7 lower and the 2 Yr. notes 2 lower at 108’22. The Dec. Eurodollars are 3.5 lower at 98.660. This morning’s monthly Employment Report showed a loss in non-farm payroll jobs of 663,000 versus expectations of a loss of 700,000. The initial reaction in Bonds was a break to the 128’07 level which was 30 points lower for the day before recovering somewhat. If you remain short the Bonds either take profits or lower your protective buy stop to the 129’06 level. We remain short the 2 Yr. Notes and/or the 5 Yr. Notes and will take profits if the 2 Yr. Notes trade below the 108’12 level. We also remain short the Dec. Eurodollars and will take profits if the market trades below the 98.610 level.
Grains: Yesterday Beans were 25 cents higher, Corn 6 higher and Wheat 25 higher. Over night Beans were 6 higher, Corn fractionally lower and Wheat 3 higher. We continue to hold long calls and/or call spreads in the July Corn. I will be looking to start taking profits if the July Corn trades in the 430’0 area (currently 411’2).
Cattle: Yesterday Live Cattle closed 140-162 higher with the June contract closing 162 higher at 83.00. As mentioned yesterday this market has been in a downtrend since last summer. I would like to see the market close above the 84.30 level before venturing on the long side.
Silver: May Silver is currently 30 cents lower at 12.72. Yesterday once again provided a buying opportunity for short term traders between the 12.60 and 12.75 areas. This morning I am going to error on the side of caution and stand aside from short term trades. I am a bit concerned that the market has now traded under the 12.70 level for the past three days. If you remain long continue to use a protective sell stop at 12.30.
S&P's: June S&P’s are currently 5.25 lower at 830.25. The initial reaction to the Jobs report was a rally to the 844.50 level before the market starting to slowly give up its gains to current levels which are the low since the report. Yesterday we tried the short side of the market only to be stopped out when the market traded above the 833.00 level. I feel this market will be a trading affair over the next few sessions. Near term support is currently 812.00 and resistance 844.00. Treat as a trading market between support and resistance. For the moment I prefer the short side of the market.
Currencies: As of this writing the June Euro is 51 lower at 1.3392, the Swiss about unchanged, the Yen 23 lower and the Pound 75 higher at 1.4787. The June Dollar Index is currently 18 higher at 85.070. As mentioned yesterday the individual currencies are too volatile at present for me to trade effectively. I will for the present be a buyer in the Dollar Index below the 83.50 level and a seller above the 86.50 level.