Markets

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

Financials: Sept. Bonds are currently 15 higher at 125'23 and the 10 Yr. Note 8 higher at 123'16.5. We remain long the Sept. 10 Yr. Note 121'00 put.

Grains: Yesterday Beans closed 7 cents lower, Corn 21 cents higher and Wheat 3 cents lower. Over night Beans were 8 lower, Corn 4 lower and Wheat 4 lower. As expected Corn gained on the grains yesterday because of the Report. We continue to hold the combination of long Dec. Wheat and short the 900'0. I like the long side of Dec. Corn on breaks. In my opinion if there is in fact the reduction of acreage and yield for Corn (83.2 million acres and a yield of 153 bushels per acre), prices should be headed higher. Of course always being one to look for the "kink in conventional wisdom", a dramatic change in the direction of energy prices or the value of the dollar will have an effect.

Cattle: Yesterday Live Cattle closed 100 higher and Feeder Cattle closed about 50 higher. As expected by higher feed costs, Live Cattle gained on Feeder Cattle. I remain on the sidelines.

Silver: July Silver is currently 70 cents lower at 36.71. We continue to hold a small long position. Aug. Gold is currently 12.50 lower at 1530.00. This market continues to act "toppy".

S&P's: June S&P's are currently 8.00 lower at 1279.50. We have covered all short positions and are currently on the sidelines. Support for the Sept. contract is currently the 1265.00 area with resistance at 1289.00. Starting Monday I will be quoting the Sept. contract which is currently about a 5.00 point discount to the June.

Currencies: As of this writing the Sept. Euro is 100 lower at 1.4367, the Swiss 10 lower at 1.1871, the Yen 27 higher at 1.2485 and the Pound 135 lower at 1.6209. If you remain short either the Swiss or the Euro either take profits or lower your buy stops to 100 points above current levels. You might also consider selling out of the money puts against your position as a protective strategy (this will ultimately limit your profit potential to the strike price sold plus the premium collected).

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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