Markets

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

Financials: June Bonds are currently 12 lower at 123'28. Over night the market traded as high as 124'25 stopping us out of a recent short position. The monthly employment report showed an increase in non-farm payroles of 244,000 versus a pre report estimate of 175,000 pushing the Bonds down to current levels. I am on the sidelines in the Bonds at the moment. We remain long out of the money puts in the June and Sept. 2012 Eurodollars. If you are spread in the June 2012 with the short leg at a strike price of 97.00 or lower I recommend covering these positions.

Grains: Yesterday Beans were 30 cents lower, Corn 9 lower and Wheat 27 lower. Over night Beans were 3 lower, Corn 9 lower and Wheat 1 higher in an active trade which followed most other commodities such as energies and metals in a "sseesaw" trade. This puts July Corn in the mid 690's an area I've been watching for a buying opportunity.

Cattle: Live Cattle are currently slightly lower with the June contract trading 30 lower at 109.37. If you remain long June Cattle I recommend using a sell stop just below the 109.00 level (the overnight low was 109.00).

Silver: July Silver is currently 93 cents lower at 35.31. Yesterday we went long with a smaller than usual position under the 37.50 level. I am holding the position for the moment.

S&P's: June S&P's are currently 10.00 higher at 1345.00. I feel this market is currently in resistance and recommend the short side of the market between current level and the mid 1350's. Support is currently the 1330.00 level.

Currencies: As of this writing the June Euro is trading 25 lower at 1.4483, the Swiss 62 lower at 1.1430, the Yen 38 lower at 1.2430 and the Pound 58 higher at 1.6428. Yesterday's action has once again turned me negative on the Euro and I will be leaning to the short side of this market on a rally to the 1.4550 level.

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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