Financials: Bonds are currently 5 higher at 127’26, the 10 Yr. Notes 3 lower, the 5 Yr. Notes 4 lower and the 2 Yr. Notes 2 lower at 108’22.5. The Dec. Eurodollar is currently 1 higher at 98.76. We remain short the 2 Yr. Notes and/or the 5 Yr. Notes. We also remain short the Dec. Eurodollars. If you remain long June Bonds take profits. Resistance of 128’04 was met last night as the market made a high of 128’07. CPI (consumer price index) came out about as expected, down 0.1%. Excluding food and energy the CPI was up 0.2% slightly above expectations of +0.1%. Support in June Bonds continues at 126’03 and resistance 128’04. My expectations have been met for the near term in the Bonds and I recommend staying on the sidelines for the day.
Grains: Yesterday Beans were 14 cents higher, Corn 6 higher and Wheat 1 lower. Over night Beans were 5 higher, Corn 2 lower and Wheat 3 lower. We remain long out of the money calls and/or call spreads in July Corn. I will be a buyer in July Corn futures if the market trades below the 385’0 level. Technically July Wheat is starting to look interested. I would consider going long on any further breaks with the risk being the contract lows of 510’0 (currently the market is at 537’4).
Cattle: Yesterday Live Cattle closed 75-112 lower with the June contract closing 80 lower at 83.80. If you remain long June Cattle continue to use a protective sell stop at 83.45. If the market trades above 85.20 either take profits or raise your sell stop to the 84.30 level.
Silver: May silver is currently 3 cents lower at 12.73. I am still on the sidelines as far as short term trades are concerned. Support remains in the 12.10 area and resistance at 13.05.
S&P's: June S&P’s are currently 4.25 lower at 836.00. Near term support of 834.00 is holding for the moment. If the 834.00 level is penetrated the next level of near term support will be the 826.00 area. For short term traders I recommend the long side of the market between 826.00 and 834.00. Longer term support is the 814.00 area, a level where I will be recommending going long if the market allows. Near term resistance is the 848.00 -853.00 area.
Currencies: As of this writing the June Euro is 117 lower at 1.3168, the Swiss 91 lower, the Yen 64 lower and the Pound 26 lower. This morning we went long the June Euro below the 1.3185 level. Just a reminder, in addition to the full size futures contract of 125,000 Euros, there is a mini contract that is one half the size and a micro contract that is one tenth the size. The June Dollar Index is currently 57 higher at 85.50. I will be a seller above the 86.50 level if the market allows.