Financials: June Bonds are currently 15 points higher at 126’18, the 10 Yr. Notes 15 higher, the 5 Yr. Notes 9 higher and the 2 Yr. Notes 3 higher at 108’21. Dec. Eurodollars are currently 7.5 higher at 98.675. I am once again willing to go short the Dec. Eurodollars at 98.710 if the market allows. We remain short the June 2 Yr Notes and/or the 5 Yr. Notes and will take profits if the 2 Yr. Notes trade below the 108’12.0 level. If you went long June Bonds in the 126’15 area use a protective sell stop in the 125’28.0 area for protection. If the market trades above the 127’12.0 level either take the short term profit or raise your protective sell stop to the 126’30.0 level.
Grains: Yesterday Beans closed about unchanged, Corn 1 cent higher and Wheat 6 lower. Over night Beans were fractionally lower, Corn 3 cents lower and Wheat 6 lower. We remain long out of the money calls and/or call spreads in July Corn. Support for July Corn is currently at 404’0 and near term resistance is in the 425’0-430’0 area. I will be a buyer on set backs to support. Support and Resistance for July Beans is currently 975’0 and 1022’0. I prefer the long side of this market on breaks to support. Some renewed strength in the Dollar this morning could put some early pressure on the Grains this morning.
Cattle: Yesterday Live Cattle closed 20-47 higher with the June contract closing 20 higher at 84.37. As mentioned over the past week I have been waiting for a close above the 84.30 level to give me a buy signal. I recommend going long on a 25-100 point break from present levels with a protective sell stop at 81.25 ( about an $1100 risk).
Silver: May Silver is currently 3 cents higher at 12.15. Support is currently 11.80 for the May contract and 11.90 for the July. As I have mentioned over the last year, I think it is prudent to have 3-6% of your portfolios in alternative investments such as Silver. Over the last 2 months we have had nearly a 17.5% break in the price of silver. I feel that the Silver is good buy for a long term trade at the stated support levels. Just as a point of reference a mini-silver contract is 1000 ounces which would put the value of the contract at $11,800.
S&P's: June S&P’s are currently 14.00 points lower at 816.50. I am continuing to look at this market as a trading affair between 812.00 and 844.00. Today I will be looking to try the long side of the market on breaks to support.
Currencies: As of this writing the June Euro is currently 122 lower at 1.3275, the Swiss 52 lower, the Yen 57 higher at 0.9974 and the Pound 29 lower. The June Dollar index is currently 51 higher at 85.615. I am willing to sell the June Dollar Index above the 86.50 level if the market allows.