Financials: Bonds are currently 9 lower at 126’26, the 10 Yr. Notes 1 lower, the 5 Yr. Notes unchanged and the 2 Yr. Notes 1 lower at 108’22.0. The Dec. Eurodollars are unchanged at 98.720. Yesterday we were able to go short the Dec. Eurodollars above the 98.700 level. I will be looking to once again take profits if the market trades below the 98.610 level. We remain short the 2 Yr. Notes and/or the 5 Yr. Notes. If you went long the June Bonds yesterday either take profits or raise your protective sell stop to the 126’090 level. There were two reports this morning: Retail Sales which were down 1.1% and PPI which was down 1.2%. The initial reaction was somewhat negative to both of these numbers pushing Bonds up about 10 ticks and the S&P’s down about 5.00 points from pre-report levels. To be honest, given all the news over the last month or two I do not see how the market was looking for figures that were more constructive. Support and resistance for June Bonds have moved up a bit to the 126’03 to 128’04 areas.
Grains: Yesterday Beans were 14 cents higher, Corn 2+ lower and Wheat 1 higher. Over night Beans were 8 higher, Corn fractionally higher and Wheat fractionally higher. We remain long out of the money calls and/or call spreads. We currently have no futures positions. I will be a buyer of July Corn if the market trades below the 385’0 level. As for Beans, people are still talking about last months Planting Intention report and the “missing acreage”. If by the end of this month those numbers turn out to be near reality Beans could have a pretty good run to the upside.
Cattle: Yesterday Live Cattle closed 10 lower to 17 higher. June Cattle closed unchanged at 84.60 after being about 65 lower early in the session. Over night Cattle are about 20 higher. If you remain long raise your protective sell stop to the 83.45 level. Near term resistance is the 85.20 area; if this level is penetrated I would be looking for a rally to the 86.00 level.
Silver: May Silver is currently 13 cents lower at 12.63. As mentioned yesterday, near term support is now in the 12.10 level. I am currently on the sidelines as far as short term trades (1-5 days) are concerned.
S&P's: June S&P’s are currently 5.50 lower at 848.50. Yesterday we once again stumbled trading the short side of the market only to be stopped out near the highs of the day when the market traded through the 858.00 level late in the session. For the near term support is 834.00 and resistance 860.00. I am on the sidelines for the day. My suspicions are that this market is still a bit over bought at present levels. This mornings reports (see financial comment) should keep some pressure on the market.
Currencies: As of this writing the June Euro is 120 lower at 1.3235, the Swiss 65 lower, the Yen 70 higher and the Pound 38 higher at 1.4870. As mentioned yesterday I will be looking to the long side of the Euro below 1.3185 if the market allows. The June Dollar Index is currently 32 higher at 85.25. I will be a seller in the Dollar Index above the 86.50 level if the market allows.