Financials: June Bonds are currently 8 higher at 127’01.0, the 10 Yr. Notes 7 higher, the 5 Yr. Notes 5 higher and the 2 Yr. Notes 2 higher at 108’21.5. Dec. Eurodollars are currently 5 higher at 98.690. We remain short the June 2 Yr. Notes and/or the 5 Yr. Notes and will cover these positions if the 2 Yr. Note trades below the 108’12.0 level. I still recommend reinstating a short position in Dec. Eurodollars at 98.71 or higher if the market allows. Yesterday we were able to go long June Bonds in the 126’15.0 area. My near term objective of 127’12.0 was reached over night (the high was 127’15.0). If you remain long either take profits or raise your protective sell stop to the 126’30.0 level.
Grains: Yesterday Beans were 4 cents lower, Corn 9 lower and Wheat 17 lower. Over night Beans were 2 higher, Corn 5 lower and Wheat 4 lower. We remain long out of the money calls and/or call spreads in July Corn. Support of 404’0 was reached over night in July Corn and I am recommending going long with a protective sell stop at 385’0. Support and resistance for July Beans remain between 975’0 and 1022’0. I prefer the long side on breaks to support with an initial 20 cent risk.
Cattle: Yesterday Live Cattle closed 25-62 lower with the June contract closing 62 lower at 83.75. As mentioned yesterday I am recommending going long 25-100 points below Monday’s close of 84.37. If you choose to go long I am recommending a protective sell stop at 81.25 which will be an initial risk of about $1100.
Silver: May Silver is currently 11 cents higher at 12.30. Support is currently 11.80-12.02 and resistance is in the 12.65-12.80 area. I am recommending going long belong the 12.00 level if the market allows.
S&P's: June S&P’s are currently 3.50 higher at 817.50. Yesterday I recommended the long side of the market in the 812.00 area. If you went long use a protective sell stop 2.00 points below last nights low of 802.25. If the market trades above 819.50 either take profits or raise your sell stop to the 813.50 level. Near term resistance is now the 826.00 level. If this level is penetrated the next level of resistance will be 834.00.
Currencies: As of this writing the June Euro is 8 higher at 1.3260, the Swiss 15 lower at 87.38, the Yen 19 higher at 0.9983 and the Pound unchanged at 1.4728. The June Dollar Index is currently 12 lower at 85.545. I am looking to be a sell in the Dollar index above the 86.50 level if the market allows. Near Term support and resistance for the June Eurocurrency is 1.3120 and 1.3625. I prefer to be a buyer on a break to support.