Financials: Bonds are currently 22 lower at 121’02, the 10 Yr. Notes 12 lower, the 5 Yr. Notes 6 lower and the 2 Yr. Notes 2 lower at 108’24.5. Dec. Eurodollars are 3 lower at 98.905. We continue to remain short the June 2 Yr. Notes and/or the 5 Yr. Notes. We also remain short the Dec. Eurodollars. I remain a bit friendly to the Bonds and continue to recommend holding short out of the money puts and/or long out of the money calls.
S&P's: June S&P’s are currently 1.00 higher at 910.00. As I have stated over the last week or so I prefer the short side of this market on rallies. Resistance is currently above the 918.00 level for the near term and long term the 930.00 level. Support for the near term is 898.00 and longer term 875.00. If you remain short I recommend using a protective buy stop at 943.00. If the market trades below the 902.00 level, lower your buy stop to the 926.00 level.
Grains: Yesterday Beans were 4 cents higher, Corn fractionally lower and Wheat fractionally lower. Over night Beans were 10 higher, Corn 3 higher and Wheat 3 higher. Yesterday’s crop progress report showed: Corn 48% planted versus 33% a week ago and a 5 yr. average of 71%. Beans 14% planted versus 6% a week ago and a 5 yr. average of 25%. This morning’s ending stocks showed: Corn 1.145 Billion bushels versus 1.6BB a year ago, Beans 230 million bushels versus 130 million bushels a year ago and Wheat 0.637 billion bushels versus 0.669 a year ago. The report is considered constructive to friendly for Corn, Beans and Wheat. The early calls are 10-20 higher for Beans, 5-10 higher for Corn and 5-7 higher for Wheat. We remain long out of the money calls and/or call spreads in July Corn. If you remain long July Wheat either take profits or raise your protective sell stop to the 578’0 level.
Cattle: Yesterday Live Cattle closed 30 to 70 higher with the nearby June contract closing at 83.27. Over night the Cattle are about 30 higher at 83.55. If you remain long either take profits or raise your protective sell stop to the 82.05 level. If the market trades above 84.10 raise your stop to the 82.90 level.
Silver: July Silver is currently 28 cents higher at 14.19. Support is currently 13.40 and resistance 14.40. I will be a buyer below the 13.60 level.
Currencies: As of this writing the June Euro is 45 higher at 1.3640, the Swiss 29 higher, the Yen 37 higher and the Pound 152 higher 1.5285. We continue to remain short the Pound and will use a protective buy stop at 1.5450. If the market trades below the 1.5150 level I will lower my buy stop to the 1.5360 level. The June Dollar Index is currently 36 lower at 82.430. We remain long this market with a protective sell stop at the 81.65 level.