A pen and a calculator.
Markets

The Nemenoff Report - Bonds Higher, S&P's Higher, Silver Higher

Financials: June Bonds are currently 21 higher at 122'01. Yesterday the Fed left rates unchanged. Comments by Chairman Bernanke gave the market little reason to believe that rates will increase in the near future, but the possibility of higher rates down the road will be decided by improvement in the unemployment rate and inflation that is more than "transitory". I continue to remain on the sidelines in Bonds. Support is currently 120'16 and resistance 122'16.

Grains: Yesterday Beans closed 4 cents lower, Corn 13 lower and Wheat 35 lower. Over night Beans were 8 higher, Corn 3 higher and Wheat 3 lower. The July Corn 700'0/850'0 strangle is now under the 43'0 cent level, providing a partial profit taking opportunity. Delayed planting due to weather is still a concern for deferred contracts of Corn.

Cattle: Yesterday Live and Feeder Cattle closed sharply higher on a short covering rally. I am still willing to trade June Cattle from the long side on a break below the 11.00 level if the market allows. As of this writing the market is moderately lower.

Silver: July Silver is currently 2.85 higher at 48.81 and June Gold 16.00 at 1533.00. It is apparent that these markets want to trade higher, but to be honest I find them too volatile to trade futures and recommend call spreads if you want to be on the long side of the market.

S&P's: June S&P's are currently 1.00 higher at 1352.00. Positive earnings, low rates and a weak dollar are all contributing to higher markets. I am on the sidelines.

Currencies: As of this writing the June Euro is 80 higher at 1.4801, the Swiss 42 higher at 1.1453, the Yen 115 higher at 1.2280 and the Pound 103 higher at 1.6670. I am currently on the sidelines having liquidated all Euro positions. To state the obvious, Fed Chairman Bernanke did not say anything yesterday to bolster the Dollar.

Regards,

Marc

888.908.4310 | 312.264.4310

mnemenoff@pricegroup.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest Markets Videos