Financials: Bonds are currently 13 lower at 122'05, the 10 Yr. Notes 7 lower at 120'22, the 5 Yr. Notes 5 lower at 116'31 and the 2 Yr. Notes 2 lower at 108'22. The Dec. Eurodollar is presently 3 lower at 98.775. If you are short the 5 Yr. Notes take profits if the market trades below the 116'24 level. My downside objective for short 2 Yr. Notes positions remains at 108'12 and my downside objective for short Eurodollar positions remains at 98.610. Yesterday my recommended sell stop for remaining long positions was penetrated when the market traded below the 12.23 level. It currently reads: remaining short positions.
Grains: Yesterday Beans were 35 cents higher, Corn 3 higher and Wheat 3 higher. Over night Beans were 1 lower, Corn fractionally higher and Wheat 4 higher. We continue to be long out of the money calls and/or call spreads in July Corn. I am interested in being a buyer in July Corn if the market trades below 392'0 and July Wheat below 530'0. As for Beans, support in July Beans is currently 1010'0 and resistance 1064'0 to 1076'0. Closes above the 1076'0 level on the July contract could be a major upside breakout.
Cattle: Yesterday Live Cattle closed 45-62 lower with the nearby June contract closing 45 lower at 82.50. As mentioned Thursday I was looking to be a buyer on a setback. If you went long I am recommending using a protective sell stop at 80.75. If the market trades above 83.35 either take the short term profit or raise your sell stop to the 81.70 level. Something to keep an eye on: Lean Hog futures have had quite a break this week and are starting to show signs of a small price recovery this morning. The price pressure on Hogs has had a negative effect on Live Cattle prices which could find some sympathetic stability and upward momentum as Pork prices start to stabilize.
Silver: July silver is currently 10 cents lower at 12.21. Yesterday my recommended protective sell stop for remaining short positions was penetrated when the market traded below the 12.23 level. I will be looking to re-enter this market as a buyer on a break below the 11.85 level if the market allows.
S&P's: June S&P's are currently 2.50 higher at 872.50. Near term support for the June contract remains at 857.00 and resistance at 888.00. My gut feeling is that this market has had quite a rally off of the lows made in early March of 668.00 of nearly 30% and the market is going to need some very good news to sustain this kind of momentum other wise it will be like making water run up hill for the near term. So for the near term I am going to have lowered expectations and look to the short side of the market on rallies as selling opportunities. If the market should have a break to the 775 level, and I am not necessarily predicting this, I would once again be looking to the long side of the market.
Currencies: As of this writing the June Euro is currently 10 lower at 1.3251, the Swiss 11 higher, the Yen 75 lower and the Pound 60 higher at 1.4880. I am looking to go short the Pound in the 1.4950 area. The June Dollar Index is currently 5 higher at 84.825.