Financials: Bonds are currently 5 lower at 125’16, the 10 Yr. Notes 1 higher, the 5 Yr. Notes unchanged and the 2 Yr. Notes unchanged at 105’18.5. Dec. Eurodollars are 4 higher at 98.630. We remain short the 2 Yr. Notes and/or the 5 Yr. Notes and will cover the position if the market trades below 108’12.0. We will once again try the short side of Dec. Eurodollars above the 98.710 level if the market allows. The Bonds are currently trading at near term support; however, I prefer to wait on the sidelines. Resistance for June Bonds is currently 127’12.0.
Grains: Yesterday Beans were 19 cents higher, Corn 4 higher and Wheat 5 higher. Over night Beans were 4 higher, Corn 2 higher and Wheat 5 higher. We remain long out of the money calls and/or call spreads in July Corn. We are also long July Corn from below the 385’0 level and will use a protective sell stop at 363’0 and will raise it to 373’0 if the market trades above the 390’0 level. We remain long July Wheat with a protective sell stop below the 509’0 level.
Cattle: Yesterday Live Cattle closed 35-65 higher with the June contract closing 65 higher at 83.27. Electronically the market is currently trading slightly lower at 83.20. I remain on the sidelines waiting to see if the 82.00 level will hold for a few days before entering the long side.
Silver: May Silver is currently 9 cents higher at 12.15. Late in the session yesterday the market dipped to the 11.80 level before recovering as the equities market and the Dollar started showing some renewed strength. One thing to keep in mind, in early 2008, Silver and the Equities markets were near their highs (Silver over $20.00) and the Dollar was near its lows. I’m not suggesting this same scenario will play out again, just saying that Silver and Equities will not necessarily move in opposite directions. We remain long silver. I recommend that short term traders be looking for an exit strategy as the market nears resistance in the 12.35-12.40 area.
S&P's: June S&P’s are currently 11.00 lower at 836.00. Yesterday the market covered the gamut of Support at 826.00 and Resistance at 844.00. Some lower than expected earnings have put a bit of pressure on the market this morning along with “rumors” that the “stress tests” for banks that have received TARP money may be disappointing. Barring some new news, I am going to depend on the technicals for the moment. Near term support remains at 826.00 and resistance at 844.00. Treat as a trading market.
Currencies: As of this writing the Euro is 10 higher at 1.2934, the Swiss 7 higher, the Yen 98 higher and the Pound 244 lower at 1.4423. The June Dollar Index is currently 5 higher at 86.940. We remain long the June Euro and will enter a protective sell stop at 1.2780. If the market trades above the 1.3010 level I will raise the stop to the 1.2870 level. We also remain short the Dollar Index and will use a protective buy stop at 87.900 for the moment. If the market trades below the 86.30 I will lower the stop to the 87.40 level.