Financials: Bonds are currently 6 lower at 125’24, the 10 Yr. Notes 3 lower, The 5 Yr. 2 lower and the 2 Yr. Notes about unchanged at 108’18.0. Dec. Eurodollars are currently 1.5 lower at 98.650. 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 108’12.0 level. I am still looking to go short the Dec. Eurodollar above the 98.700 level if the market allows. June Bonds are currently in the 125’24.0 support level and I recommend trying the long side of the market for a short term trade with a 20 point risk. Resistance in June Bonds is currently 127’20.
Grains: On Friday Beans were a penny higher, Corn 7 lower and Wheat 10 lower. Over night Beans were 4 lower, Corn 6 lower and Wheat 3 lower. We remain long out of the money calls and/or call spreads in July Corn. Over night we were stopped out of a recent long position in July Corn futures when the market penetrated the 397’0 level. I will reinstate a long position in this market if the July Corn futures trade below the 385’0 level.
Cattle: On Friday Live Cattle closed 60-137 higher with the June contract closing 82 higher at 84.60. If you remain long either take profits or continue to use a protective sell stop at your break even level. If the market trades above the 85.10 level, raise your sell stop to the 84.40 level.
Silver: May Silver is currently 18 cents higher at 12.51. This morning’s strength may be an indication that this market has found support in the 12.10 level. I am still pretty much on the sidelines and will wait and see if this market holds its current level over the next day or two. As I have mentioned before, long term traders should be looking for buying opportunities. Short term traders (1-5 days) should wait and see if the current rally holds.
S&P's: June S&P’s are currently 5.00 lower at 847.50. On Friday we tried the short side of the market only to be stopped out with a loss when the market traded above the 852.00 level. I am willing to once again try the short side of the market this morning with a protective buy stop above the 858.00 level for a short term trade. Near term support is currently the 834.00 level.
Currencies: As of this writing the June Euro is 142 higher at 1.3285, the Swiss 109 higher, the Yen about unchanged at 98.60 and the Pound 123 higher at 1.4755. I am looking to be a buyer in the June Euro on breaks below the 1.3185 level. The June Dollar Index is currently 72 lower at 85.360. I will be a seller in this market if it trades above the 86.50 level. About 4 weeks ago we put on some June Yen put spreads. If you remain in these spreads with the 100.00 strike price as your long leg, roll this position down to the 99.00 or 98.00 strike price in an effort to take some money off the table.