Financials: Bonds are currently 25 higher at 114’00, the 10 Yr. Notes 10 lower, The 5 Yr. Notes fractionally higher and the 2 Yr. Notes fractionally lower at 107’15.7. Given Friday’s sharply lower close in the 2 Yr. Notes, 26 points lower, I recommend covering all short positions in the Sept. 2 Yr. Notes as the market has somewhat exceeded my downside objective. Keep in mind that the 2 Yr. Notes contract size is $200,000 and 26 points represents $1625. We remain short Dec. Eurodollars and I recommend taking profits below 98.630.
S&P's: June S&P’s are currently 8.00 lower at 932.50. Fridays early rally after the Employment Report did not hold but did make a new year to date intraday high for the June contract. As I mentioned Friday, the market may now be in an uptrend, however, I still need a bit more proof, such as the market closing above the 951.50 level. For the moment I am going to treat the S&P’s as a trading affair between 921.00 and 948.00.
Currencies: As of this writing the Euro is 91 lower at 1.3870, the Swiss 61 lower, the Yen 3 higher and the Pound 51 lower at 1.5924. We remain on the sidelines.