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

Financials: Sept. Bonds are currently 12 lower at 125'12 and the 10 Yr. Note 10 lower at 123'06.5. The 10 Yr. Note yield remains near 3.0%. We remain long the Sept. 10 Yr. Note 121'00 put from the 35/64ths level and is currently trading at 40/64ths. My objective for this trade is 54/64ths.

Grains: On Friday July Beans closed 6 lower, Corn 1 lower and Wheat 14 higher. New Crop prices closed lower. Over night Beans were 3 lower, Corn 1 lower and Wheat 4 higher. Dec. Corn was 4 cents lower and Dec. Wheat 1 higher. We remain long Dec. corn and continue to hold a combination of long Dec. Wheat and short the dec. Wheat 900'0 call.

Cattle: On Friday Live cattle closed 200 lower and Feeder Cattle 150 lower. I remain on the sidelines and feel we are near a bottom on both Live and Feeder Cattle. I still want to go long the Dec. cattle 116'120 call spread at 100 points (currently at 135) if the market allows.

Silver: July Silver is currently 73 cents lower at 35.61. We continue to hold a small long position. Aug. Gold is currently 2.00 lower at 1527.00. I still feel this market is overbought and feel it will break below the 1500.00 level. Support for Aug. Gold is currently 1480.00 and resistance 1546.00. Treat as a trading market between support and resistance.

S&P's: Sept. S&P's are currently 7.00 higher at 1270.75. Support for the near term has held in the 1265.00 area (the overnight low was 1263.00). We are out of all short positions and have covered the combination of short June futures and short the June 1330 put. Treat the sept. contract as a trading market between 1265.00 and 1277.00 for the near term.

Currencies: As of this writing the Sept. Euro is 32 higher at 1.4344, the Swiss 69 higher at 1.1952, the Yen unchanged at 1.2454 and the Pound 81 higher at 1.6300. We remain short the Euro (if you are short multiple contracts, take partial profits) with a protective buy stop 100 points above the market. If you remain short the Swiss use a protective buy stop 50 points above the market. If you are short the Sept. Euro 1.50 call, roll the position up to the 1.52 and take some money "off the table". You also might consider selling an out of the money put against a naked short position in the Sept. Euro.

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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