Markets

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

Financials: Sept. Bonds are currently 19 higher at 126'02 and the 10 Yr. Notes 10 higher at 124'00 with a yield once again below 3.0% at 2.95%. This mornings Weekly Jobless Claims Report showed a drop of 16,000 vs. expectations of a decrease of 7,000. Housing starts were up 3.5% vs expectations of an increase of 4.8%. We are currently on the sidelines watching the long 10 Yr. Note/ short Bond spread which is currently at 2'02 premium the bonds.

Grains: Yesterday July Beans closed unchanged, Corn down the 30 cent limit, and Wheat 22 lower. Over night Beans wee 14 lower, Corn 10 lower and Wheat 8 lower. As mentioned last week "the fly in the ointment" to the bull market would be lower energy prices and a stronger Dollar. This has happened and the response, to "state the obvious" has been liquidation. I still feel the fundamentals are intact for higher prices down the road. We continue to hold a combination of long futures and short out of the money calls in Dec. Corn and Dec. Wheat.

Cattle: Yesterday Live Cattle closed 50 lower on nearby contracts and 100 lower on deferred contracts. Feeder Cattle closed slightly lower on nearby contracts and moderately lower on deferred contracts.

Silver: July Silver is currently 13 cents higher at 35.57. We continue to hold a small long position.

S&P's: Sept. S&P's are currently 2.00 higher at 1262.00 after making a new recent low of 1253.50 over night. If you remain short either take profits or lower your buy stop to the 1265.00 area. Support is currently 1256.00 and resistance 1277.00. I am ready to try the long side of the market with protective sell stops just below the overnight low of 1253.50.

Currencies: As of this writing the Sept. Euro is 28 lower at 1.4102, the Swiss 60 higher at 1.1789, the Yen 20 higher at 1.2381 and the Pound 52 lower at 1.6108. If you are short the sept. Euro 1.52 call take profits below the 46 point level. If you are still short futures either take profits or use a protective buy stop at 1.4170. If you have a combination of short futures and short near the money puts look for profit taking opportunities.

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