Financials: Bonds are currently 12 higher at 122'17, the 10 Yr. Notes 6 higher, the 5 Yr. Notes 4 higher, the 2 Yr. Notes 2 higher at 108'26 and the Dec. Eurodollars 3 higher at 98.800. We remain short the 2 Yr. Notes and/or the 5 Yr. Notes. We also remain short the Dec. Eurodollars. As for the long end of the yield curve, Bonds and 10 Yr. Notes, I am taking a cautiously bullish stance and recommend the long side of these markets by either selling out of the money puts or buying out of the money calls. Support and resistance for June Bonds remains at 120'26 and 124'10.
Grains: On Friday Beans were 32 higher, Corn 10 higher and Wheat 33 higher. Over night Beans were up 22 cents, Corn down 4 and Wheat down 4. We continue to remain long out of the money calls and/or call spreads in July Corn. I am interested in being a buyer of futures on a 20 cent set back in both July Corn and Wheat. July Beans have had an upside breakout with Friday's close above the 1076 level. I recommend going long on sharp set backs. Support and resistance for July Beans is currently 1065'0 to 1135'0.
Cattle: On Friday Live Cattle closed 5 higher to 62 lower depending on the contract month. The nearby June contract settled 40 lower at 82.10. We remain long the June contract with a protective sell stop at the 80.75 level. If the market trades above the 83.35 level, either take profits or raise your sell stop to the 81.70 level.
Silver: July silver is currently 2 cents higher at 12.51. I am currently on the sidelines awaiting a further break before once again buying into this market. Currently support is in the 11.80 to 12.10 area. I will be a buyer below the 11.85 level.
S& P's: June S& P's are currently 4.50 higher at 880.75. As mentioned last week I prefer the short side of the market on rallies for the near term Support is currently 857.00 and resistance 888.00. Treat as a trading market between support and resistance.
Currencies: As of this writing the June Euro is 15 lower at 1.3522, the Swiss 34 lower, the Yen 4 lower and the Pound 65 lower at 1.4857. Once again the British Pound provided a selling opportunity above the 1.4950 level (the over night high was 1.4976). If you went short either take the short term profit or use a protective buy stop at 1.5050. If the market trades below the 1.4788 level lower your buy stop to your break even level.