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

Financials: Mar. Bonds are currently 19 lower at 143'28 and the 10 Yr. Note 9 lower at 130'17. This morning's Jobless Claims were down 19,000 vs. expectations of up 9,000. PPI was up 0.3% vs. expectations of up 0.2%. Yesterday's 30 Yr. Bond auction was a disappointment coming in with a yield below 3.0% (some have told me the lowest yield on record for a 30 yr. Bond auction). Over night Bonds traded as high as 145'04. Yesterday I recommended selling at resistance of 143'18 and to treat as a trading market. If you held onto this short position I would be inclined to stay with the position and use a protective buy stop at 145'07. If the market should trade below 143'12, lower your stop to 144'12. Support is now the 142'17 level. Yesterday we also put on the long Mar. 5 Yr. Note/ short Mar. 10 Yr. Note spread.

Grains: Yesterday Jan. Beans closed 18 cents lower at 1100'0, Mar. Corn 14 lower at 580'6 and Mar. Wheat nearly 20 cents lower at 580'6. I remain on the sidelines.

Cattle: Yesterday Feb. LC closed 12 higher at 118.77 and Jan. FC 15 lower at 143.75. I remain on the sidelines although my overall bias remains somewhat long term negative.

Silver: Mar. Silver is currently 17 cents higher at 29.10. Feb. Gold is currently unchanged at 1587.00. Yesterday both Gold and Silver traded dramatically lower (Gold as much as 95 dollars lower and Silver nearly 3 dollars lower). Gold broke through support of 1610.00 but held longer term support of 1560.00. Long term bulls take note.

S&P's: Mar. S&P's are currently 13.00 higher at 1219.00. Support has held in the 1206.00 area. Market reaction to Jobless Claims and PPI reports helped boost an already higher market. Resistance is currently 1228.00. Treat as a trading market with close stops 5.00 below support and 5.00 above resistance.

Currencies: As of this writing the Mar. Euro is 60 higher at 1.3055, the Swiss 138 higher at 1.0657, the Yen 48 higher at 1.2887 and the Pound 48 higher at 1.5501. Yesterday's lows in the Euro, just below 1.3000 could hold for the short term. We have rolled our long put position in the Euro down to the 1.22 strike price for Jan. expiration in an effort to "take money off the table". We remain long out of the money puts in the Yen.

Regards, Marc

888.908.4310 | 312.264.4310

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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