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

Financials: June Bonds are currently 5 higher at 125'07. Weekly Jobless Claims rose 10,000 to 424,000 versus a pre-report expectation of a decline of 4,000. Continuing claims fell 46,000 to 3,690,000. GDP rose 1.8% vs. expectations of a rise of 2.2%. The market has taken these statistics as slightly negative to the economy, rallying the Bonds about 10/32nds from just before the report. Support remains in the 123'00 area with resistance remaining in the 126'00 area. I remain on the sidelines. We continue to hold out of the money puts in the June and Sept. 2012 Eurodollars.

Grains: Yesterday Beans closed 4 higher, Corn 9 higher and Wheat 16 higher. Over night Beans were 9 higher, Corn 5 higher and Wheat 16 higher. We continue to hold a combination of long futures and short out of the money calls in Dec. Corn and Wheat.

Cattle: Yesterday Live and Feeder Cattle closed sharply higher as packers were once again bidding for Cattle. The nearby June contract of Live Cattle have now gained back most of the losses that occurred early in the week as a result of the Cattle on Feed Report. This morning I am going to liquidate recent long June Cattle positions (currently trading at 104.70) purchased below the 105.50 level and take the small loss and re-evaluate. My instinct is to buy out of the money call spreads in either the Oct. or Dec. contracts.

Silver: July Silver is currently 50 cents lower at 37.15. We continue to hold a small long position. Aug. Gold is currently 6.00 lower at 1522.00.

S&P's: June S&P's are currently 1.00 higher at 1317.25. This morning's economic reports have had little effect as of this writing. Support remains in the 1302.00 area and resistance remains in the 1328.00 area. We continue to hold a combination of short futures and short the 1330.00 put.

Currencies: As of this writing the June euro is trading 110 higher at 1.4180, the Swiss 73 higher at 1.1533, the Yen 113 higher at 1.2308 and the Pound 72 higher at 1.6346. We remain on the sidelines and recommend waiting until after the upcoming 3 day Memorial Day weekend before entering into any new positions. I continue to watch the Pound for a selling opportunity between the 164.25 to 1.6600 levels.

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.

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