Financials: Bonds are currently 20 higher at 122’20, the 10 Yr. Notes 13 higher, the 5 Yr. Notes 8 higher and the 2 Yr. Notes 2 higher at 108’29. The Dec. Eurodollars are currently 2 higher at 98.975. We remain short the June 2 Yr. Notes and the Dec. Eurodollars. We also remain short out of the money puts in the June Bonds and/or long out of the money calls. If the Bonds trade above 124’00 take profits on short puts or long call positions.
S&P's: June S&P’s are currently 15.00 lower at 891.50. I continue to prefer the short side of the market. Near term support of 898.00 has been broken. The next level of support is now 888.00 with longer term support in the 875.00 area. If you remain short lower your buy stop to the 918.00 level or take profits. If the 888.00 level is broken start looking to cover all short positions or lower your buy stop to the 902.00 level.
Grains: Yesterday Beans were 1 higher, Corn 6 higher and Wheat 7 higher. It was a volatile day in which Beans and Wheat traded both sides of settlement. Over night Beans were 15 higher, Corn 5 higher and Wheat 2 higher. We remain long July Wheat and I recommend either taking profits or raising your protective sell stop to the 587’0 level, which if stopped out should produce a healthy profit. We also remain long out of the money calls and/or call spreads in July Corn.
Cattle: Yesterday Live Cattle closed unchanged to 32 lower with the nearby June contract closing 7 lower at 83.20. As of this writing the market is about unchanged. If you remain long June Cattle either take profits or use a protective sell stop at 82.05. If the market trades above 84.10 raise your sell stop to the 82.90 level.
Silver: July Silver is currently 21 cents lower at 13.99. I remain on the sidelines and will be a cautious buyer below the 13.60 level. Resistance remains at the 14.40 level.
Currencies: As of this writing the June Euro is 26 lower at 1.3611, the Swiss 5 lower, the Yen 29 higher and the Pound 150 lower at 1.5121. We remain short the Pound and will lower our buy stop to the 1.5360 level. My near term downside target is in the 1.4900 area. The June Dollar Index is currently 24 higher at 82.66. We remain long this market with a protective sell stop at 81.65.