Grains: Yesterday July Beans were down 27 cents, Corn down 17 and Wheat down 52 cents. Over night Beans were 15 higher, Corn 5 higher and Wheat 11 higher. Wednesday was a particularly strong day for the dollar which had a negative effect on just about every commodity, especially the Grains and Metals. We remain long out of the money calls and/or call spreads in July Corn with the intention of holding the position through the June 10th Crop Production Report or until/if July Corn trades above the 455’0 level. I will also be looking at Nov. Beans below the 1010’0 as a buying opportunity.
Cattle: Yesterday Live Cattle closed 10 lower to 22 higher with the Aug. contract closing 12 higher at 8077. I still want to be a buyer below the 80.50 level on the Aug. contract (the recent low is 80.30).
Silver: July Silver is currently 8 cents lower at 15.25. Over night the market traded below my recommended sell stop for long positions of 15.10, making a low of 15.06. I will be a buyer below the 14.60 level if the market allows.
S&P's: June S&P’s are currently 3.00 higher at 934.75. Yesterday the market traded slightly below my near term downside objective of the 924.00 level. Once this occurred the market also rallied back up through my recommended buy stop of 932.00, taking us out of our short position. For the short term support continues in the 924.00 area and resistance at 942.00. I still prefer the short side of the market on rallies.
Currencies: As of this writing the June Euro is 30 higher at 1.4162, the Swiss 21 higher, the Yen 101 lower and the Pound 48 lower 1.6229. The June Dollar Index is 5 lower at 79.485. Yesterday the dollar had more than a 1% recovery from recent lows. I must admit that I like the idea of looking for a bottom in the Dollar but a one day rally is not enough for me to enter the market. I remain on the sidelines.
Financials: Bonds are currently 25 lower at 115’15, the 10 Yr. Notes 15 lower, the 5 Yr. Notes 6 lower and the 2 Yr. Notes 2 lower. Dec. Eurodollars are presently 3 lower at 99.065. We remain short the 2 Yr. Notes and the Dec. Eurodollars. This morning’s weekly jobs report showed a decline in Jobless Claims of 4,000 versus expectations of a decline of 3,000. Continuing claims were down 15,000 to 6,735,000. No major surprises. Support and resistance for Sept. Bonds continue at 114’24 to 117’15.