Financials: June Bonds are currently 2 higher at 125'16. I remain on the sidelines. Technically the market appears to want to rally to the 126'00-127'00 level. Of note: the yield on the 10 Yr. Notes is currently 3.12%. If the tield drops to 3.0% I will want to trade the Notes and Bonds from the short side.
Grains: Yesterday Beans closed 14 cents higher, Corn 22 higher and Wheat 17 higher. Over night Beans were 5 higher, Corn 6 higher and Wheat 11 higher. Yesterday we went long Corn and Wheat in both the July and Dec. contracts. If you went long the July contracts, grab some profits if you are holding multiple contracts. If you are long CEc. (new crop) contracts, take some protection by selling out of the money calls.
Cattle: Yesterday Live and Feeder Cattle once again closed on new recent lows. As mentioned over the last few sessions, I will be a buyer of June Cattle below the 105.50 level if the market allows. If you are a hedger from the short side of the market, I suggest using the next break as an opportunity to cover futures positions and go long out of the money puts as an alternative.
Silver: July Silver is currently 1.20 higher at 34.70. We continue to hold a small long position. June Gold is currently 13.00 higher at 1493.00.
S&P's: June S&P's are currently 2.25 higher at 1327.75. Support for the moment has held in the 1319.00 area. Resistance continues in the 1337.00 area. We have covered all remaining short 1360 call positions below the 9.00 level putting us on the sidelines.
Currencies: As of this writing the June Euro is trading 16 lower at 1.4202. Continue to treat as a trading market between 1.4070 and 1.4320. The Swiss is currently 37 lower at 1.1321, the Yen 20 higher at 1.2297 and the Pound 100 lower at 1.6144. I still feel the Pound has topped out and recommend the short side on rallies.
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