Markets

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

Financials: June Bonds are currently 8 higher at 123'11. Support remains just below the 122'00 level and resistance remains in the 123'22 area. I am looking to the short side of the market on a rally to resistance. We remain long out of the money puts and/or put spreads in the June and Sept. 2012 Eurodollars as a long term speculation that short term interest rates may rise over the next year.

Grains: Yesterday July beans closed 31 cents lower, Corn 10 lower and Wheat 1 higher. Over night Beans were 3 lower, Corn 1 higher and Wheat 4 lower. July Corn has traded below the 725'0-730'0 support level and could trade below the 700'0 level. I will be a buyer below the 695'0 level if the market allows. We remain short the July Corn 700'0/850'0 strangle and continue to recommend taking partial profits if you are holding multiple contracts of this trade.

Cattle: Yesterday Live and Feeder Cattle closed sharply lower. June Cattle traded and closed (110.60) below the 110.80 level providing an opportunity to go long per yesterday's recommendation. This market is currently trading at 111.30. If you went long I recommend using a close stop or taking the short term profit.

Silver: July Silver is currently 1.33 lower at 41.29 and June Gold 1.00 lower at 1539.00. I continue to recommend the sidelines in these markets. Margin has once again been increased in Silver, possibly causing further liquidation. I will be willing to once again try the long side of Silver in the 37.00 area if the market allows in the next few days.

S&P's: June S&P's are currently 3.00 lower at 1349.00. Near term support of 1350.00 has been broken putting the next level of support in the 1338.00-1343.00 area. I prefer the short side of the market from the 1353.00-1356.00 area.

Currencies: As of this writing the June Euro is 108 higher, the Swiss 53 higher at 1.1663, the Yen 13 higher at 1.2354 and the Pound 107 higher at 1.6565. I am on the sidelines.

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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