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

Financials: Bonds are currently 11 higher at 124'07 and the 10 Yr. Note 15 higher at 123'00 with a yield of 3.04%. Yesterday we were able to take profits on the Sept. 10 Yr. Note 121'00 put at 54/64ths. We are currently on the sidelines.

Grains: Yesterday July Beans were 14 cents lower, Corn 27 lower and Wheat 11 lower. Overnight Beans were 1 higher; Corn 4 lower and Wheat fractionally lower. News of an impending bill to cut ethanol subsidies and tariffs pressured the Corn throughout the session in addition to Monday afternoon's Crop Progress report which showed planting nearly complete. We remain long Dec. Corn and recommend selling the Dec. Corn 750'0 put against futures positions as a protective measure. We continue to hold a combination of long Dec. Wheat futures and short the 900'0 calls.

Cattle: Yesterday Live and Feeder Cattle closed sharply higher in response to lower feed grains. I am long term friendly to this market but remain on the sidelines.

Silver: July Silver is currently 10 cents higher at 35.52. We remain slightly long.

S&P's: Sept. S&P's are currently 12.00 lower at 1272.50. Greek debt and lower energy prices have pressured the market this morning. If you went short yesterday either take the short term profit or use a protective buy stop slightly below break even levels. Support remains in the 1265.00 area.

Currencies: As of this writing the Sept. Euro is 170 lower at 1.4255, the Swiss 65 lower at 1.1784, the Yen 32 lower at 1.2399 and the Pound 119 lower at 1.6245. If you remain short the Swiss either take profits or lower your protective buy stop to the 1.1860 level. As for the Euro: My recommended buy stop for naked short futures position was hit yesterday at 1.4450. If you are holding a combination of short futures and short out of the money puts start looking for an exit strategy. If you remain short the 1.52 call I would be inclined to stay with the position.

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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