Grains: Yesterday Nov. Beans closed 24 cents lower at 955'4, Dec. Corn 10 lower at 319'2 and Dec. Wheat 11 lower at 487'2. Over night Beans were 7 lower, Corn 2 lower and Wheat about 2 lower. As mentioned yesterday we are trying the long side of Nov. Beans under the 963'0 level with a protective sell stop at 913'0 for protection. We remain long calls and/or call spreads in Dec. Corn. I will be looking to go long Dec. Wheat under 470'0 if the market allows. Decent weather and a strong dollar over the last few sessions have put pressure on the grains.
Cattle: Yesterday Oct. Live Cattle closed 57 lower at 86.10. The market is currently about 25 higher. If you went long in the 86.00 area, use a protective sell stop just below 85.00. If the market trades above 87.00 either take profits or raise your sell stop to your break even level.
Silver: Dec. Silver is currently 1 cent lower at 15.06. Yesterday the market showed surprising strength rallying off of lows of 14.655 to new recent highs of 15.145. We remain long. The market should run into some resistance in the 15.20 area. If you are long multiple contracts you might consider once again taking partial profits. A close above the 15.20 level could signal a rally to the 15.80 area.
S&P's: Sept. S&P's are currently 1.00 lower at 995.50. Yesterday this market generated a sell signal when the market traded below the 1006.00 level. Rumors of potential bank failures have pressured the market for the past few sessions. Near term support is currently the 983.00 level and near term resistance 1006.00. I will be a seller on rallies with the risk being the recent highs in the 938.00 area. Next week we will be looking at the Dec. contract.
Currencies: As of this writing the Sept. Euro is 18 lower at 1.4196, the Swiss 15 lower at .9365, the Yen 48 higher at 1.0809 and the Pound 45 higher at 1.6208. We remain long out of the money puts and/or put spreads in the Yen and the Pound. The Sept. Dollar Index is currently 2 higher at 78.825.
Financials: Dec. Bonds are currently 12 higher at 120'11, the 10 Yr. Notes 8 higher at 117'25, the 5 Yr. Notes 4 higher at 115'24 and the 2 Yr. Notes 1 higher at 108'11. My recommended buy stop of 120'10 against recent short positions has been penetrated. If you remain short and do not want to exit the position you might consider selling the 116'00 put against the position and collecting the premium which would reduce the risk on this position. This strategy would also reduce any profit potential. The 116'00 put is currently trading at 1'22 ($1,343.75). Rumors of potential bank failures have pushed equities lower over the last few sessions and caused a flight to quality in the interest rate markets. This Friday we will have the monthly Employment Report.
This is the 1000th issue of the Nemenoff Report. I welcome your comments and suggestions.