Financials: Bonds are currently 13 lower at 122’04, the 10 Yr. Notes 10 lower, the 5 Yr. Notes 5 lower and the 2 Yr. Notes about unchanged at 108’22.7. Dec. Eurodollars are 1 higher this morning at 98.83. We remain short the June 2 Yr. Notes and/or the 5 Yr. notes and also remain short Dec. Eurodollars. I still recommend being short out of the money puts or long out of the money calls in June Bonds. This morning ADP came out with their employment survey predicting a monthly loss of 491,000 non farm payroll jobs. This is somewhat lower than the loss of 630,000 jobs estimated by economists before Friday’s Employment Report.
Grains: Yesterday Beans were 2 lower, Corn fractionally higher and Wheat 3 higher. Over night Beans were 9 higher, Corn fractionally higher and Wheat 2 higher. We remain long out of the money calls and/or call spreads in July Corn. We also remain long Wheat. If you remain long July Wheat either take the short term profit or continue to use a protective sell stop at 531’0. If the market trades above the 567’0 level raise your sell stop to the 541’0 level. I still want to be a buyer in July Beans on breaks.
Cattle: Yesterday Live Cattle closed 10-25 higher with the nearby June contract closing 25 higher at 82.12. We remain long with a protective sell stop at 80.75. If the market trades above 83.35 either take profits or raise your sell stop to 81.70. The market is currently 62 higher at 82.75.
Silver: July Silver is currently 21 cents higher at 13.61. I am currently on the sidelines awaiting a break to get long. If you remain long I recommend using a protective sell stop at 12.85. If the market should close above the 14.05 level, I will consider it an upside breakout.
S&P's: June S&P’s are currently 6.00 higher at 909.50. We remain short from the 888.00 level with a protective buy stop above the 912.00 level. The market is up this morning bases on the ADP survey (see Financials comment).
Currencies: As of this writing the June Euro is 45 higher at 1.3356, the Swiss 28 higher, the Yen 11 higher and the British Pound 9 higher at 1.5078. Yesterday we were stopped out of a short Pound position. I am once again will to short the Pound at the current level. The June Dollar Index is currently 21 lower at 84.08. I will be a buyer of the June Dollar Index below the 83.30 level.