Financials: Bonds are currently 12 higher at 125’00, the 10 Yr. Notes 2 higher, the 5 Yr. Notes 1 higher and the 2 Yr. Notes 1 higher at 108’17. We remain short the 2 Yr. Notes and/or the 5 Yr. Notes and will cover the position if the 2 Yr. Notes trade below the 108’12.0 level if the market allows. I am also willing to sell short the Dec. Eurodollars above the 98.710 level (currently 98.655). I remain on the sidelines in the Bonds.
Grains: Yesterday Beans were 8 cents higher, Corn fractionally lower and Wheat 7 higher. Over night Beans were up 8, Corn unchanged and Wheat fractionally lower. A retreat in the value of the Dollar against other currencies has given the Grains a bit of upside momentum over the last few sessions. We remain long out of the money calls and/or call spreads in July Corn. We also remain long July Corn and July Wheat futures. At this time we are using protective sell stops at 363’0 in July Corn and 509’0 in July Wheat. If July Corn trades above the 390’0 level I recommend raising your sell stop to the 373’0 level.
Cattle: Yesterday Live Cattle closed 12-40 lower with the June Contract closing 12 lower at 83.15. The market is currently trading about unchanged in the electronic overnight market. I continue to remain on the sidelines waiting to see if the market can hold above the 82.00 level n the June contract for the next few sessions before entering the long side of the market.
Silver: May Silver is currently 13 cents higher at 12.42. If you went long during the last week below the 12.00 level I recommend taking profits or using a protective sell stop at the 11.77 level. If you are in this position for a long term trade and some portfolio protection continue to hold. I recommend rolling out of any long May positions into July by April 28th to avoid a delivery situation. Next week I will be referring to the July contract.
S&P's: June S&P’s are currently 5.00 higher at 842.00. A slightly negative jobless claims report has taken the market off of its overnight highs of 848.00. For the near term, support is currently 832.00 and resistance 856.00. Treat as a trading market between support and resistance. If the market goes above the 856.00 level I will be looking to establish a short position in the 866.00-872.00 level.
Currencies: As of this writing the Euro is 21 higher at 1.3034, the Swiss 27 higher, the Yen 19 lower and the Pound 52 higher at 1.4555. The June Dollar index is currently 16 lower 86.325. We remain long the Euro and will raise our protective sell stop to the 1.2870 level. If the market trades above 1.3110 level either take profits or raise your sell stop to the 1.2925 level. We also remain short the June Dollar Index and will lower our protective buy stop to the 87.40 level. If the market trades below the 86.10 level, either take the short term profit or lower your buy stop to the 87.10 level.