Financials: June Bonds are currently 24 higher at 126’03, the 10 Yr. Notes 13 higher, the 5 Yr. Notes 7 higher and the 2 Yr. Notes 2 higher at 108’18. The Dec. Eurodollars are 3 higher at 98.650. On Friday we were able to cover short positions in the Dec. Eurodollar at or below the 98.610 level (the low was 98.595). We remain short the 2 Yr. Notes and/or the 5 Yr. Notes and will take profits if the @ Yr. Notes trade below the 108’12.0 level. If you went long the Bonds in the 125’26 support area use a protective sell stop at 124’13. Near term resistance is currently the 126’29 area and longer term resistance 128’04. For those of you who are short term traders I would recommend taking profits from a long position ion Bonds above 126’17. I remain on the sidelines in the Bonds.
Grains: On Friday Beans were 7 cents lower, Corn 9 cents lower and Wheat about 2 cents lower. Over Night Beans were 10 lower, Corn 8 lower and Wheat 10 lower. A strong dollar over the last few sessions has put some selling pressure on the Grains along with fairly good planting conditions. However, I still feel the July Corn is a buy under the 385’0 level (July Corn settled at 377’0 at 6:00a.m. in the over night trade). We remain long out of the money calls and/or call spreads. I am still recommending the long side of July Wheat with a protective sell stop below the 509’0 level.
Cattle: On Friday Live Cattle closed 15-60 lower with the June contract closing 60 lower at 84.52. My recommended stop for long positions in the June contract was hit when the market traded through the 84.60 level. On Friday afternoon there was a monthly Cattle on Feed Report which showed: On Feed at 95% versus expectations of 95.6%. Placements were 104% versus expectations of 103.8%. Marketed in March 99% versus expectations of 99.2%. Basically a pretty neutral report and I would be surprised if the market opened more than 50 points higher or lower than settlement. I am on the sidelines for the moment.
Silver: May silver is currently 27 cents higher at 12.07. On Friday we went long between the 11.80 and 12.10 levels. Near term resistance is currently 12.40. If you were only looking for a short term trade, I recommend taking a 30-50 cent profit if the market allows. Roll your May positions into July at the end of this week as we near first delivery day.
S&P's: June S&P’s are currently 15.00 lower at 852.00. On Friday we went short in the 862.00-869.00 area. Near term support is currently the 844.00 level and longer term 826.00. For short term traders, take profits from short positions. Longer term traders should use a protective buy stop at 864.00 and be prepared to lower it to 855.00 if the 844.00 level is penetrated.
Currencies: As of this writing the Euro is 47 lower at 1.2974, The Swiss 9 lower, the Yen 67 higher and the Pound 218 lower at 1.4573. We remain long the Euro from Friday around the 1.3050 level. The June Dollar Index is currently 39 higher at 86.68. I am recommending the short side of the Dollar Index above the 86.50 level.