Financials: June Bonds are currently 14 higher at 127’13, the 10 Yr. Notes 9 higher, the 5 Yr. Notes 3 higher and the 2 Yr. Notes unchanged at 108’17.5. On Friday we were able to cover short positions in the Dec. Eurodollars below the 98.610 level (currently 98.615). I will once again look to be a seller above the 98.700 level if the market allows. We remain short the 2 Yr. Notes and/or the 5 year notes and will cover this position if the 2 Yr. Notes trade below the 108’12.0 level. Support on June Bonds is currently 126’15 and resistance 129’30. As mentioned last week, I am only looking for short term trades in the Bonds. I am changing my bias to the long side of this market on breaks.
Grains: On Friday Beans were 18 higher, Corn 2 higher and Wheat 13 higher. Over night Beans were 11 higher, Corn about 2 higher and Wheat 8 higher. We remain long out of the money calls and/or call spreads in July Corn. As mentioned last week I will be looking to start taking profits if the July Corn trades above the 430’0. Producers should start looking for a hedging strategy in Dec. Corn above the 450’0 level if the market allows.
Cattle: On Friday Live Cattle closed 82-117 higher with the June contract closing 117 higher at 84.17. Active sales of dressed beef and the rumors of increased business in Asia, particularly Korea, may have put in a bottom for this market. I am still watching for a close above the 84.30 level on the June contract before I start buying. If the market closes above this level I will be a buyer on the next setback.
Silver: May Silver is currently 41 cents lower at 12.33. The market has traded as low as 12.26 this morning setting off our sell stops at 12.30. Support is once again at the 11.80 level. I will be looking to reinstate long positions below this level.
S&P's: June S&P’s are currently 8.00 lower at 832.50. For the near term I am looking to treat this market as a trading affair between support of 812.00 and resistance of 844.00. I still prefer the short side of this market on rallies to resistance for short term trades.
Currencies: As of this writing the June Euro is just 6 lower at 1.3482, the Swiss is unchanged, the Yen 59 lower at 0.9926 and the Pound 40 higher. The Yen is now trading below 1.000 (1.0072 to the dollar) for the second straight session. The June Dollar Index is currently is currently 10.5 higher at 84.660. For the near term I will be a buyer in the Dollar Index below the 83.50 level and a sell above the 86.50 level. I am standing aside for the present on taking a position in the individual currencies.