Markets

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

Financials: June Bonds are currently 5 lower at 123'22. The long 10 Yr. Notes/short Bonds spread is currently at 1'26 premium the Bonds. We continue to hold this spread with an objective of 1'16 premium the Bonds at which point we will take profits. We remain long out of the money puts in the June and Sept. Eurodollars.

Grains: Yesteray Beans closed 3 higher, Corn fractionally lower and Wheat 8 higher. Over night the Grains were slightly higher. This morning's supply/demand report showed a higher than expected carryover in Corn of 730 million bushels vs. expectations of 675 million bushels. The carryover in Beans was 170 million bushels vs. a pre-report expectation of 153 million bushels. In my opinion this reflects reduced export demand over the last six weeks. Yesterday we took profits from recent long Corn positions as the market traded at our recommended stop of 702'0. We continue to hold a reduced short position in the July Corn 700'0/850'0 strangle.

Cattle: Live Cattle are currently slightly higher in the nearby contracts and slightly lower in deferred contracts. Feeder Cattle are currently about 100 higher reflecting lower anticipated feed grain prices. If Corn should stay under pressure for the next few sessions we should see Feeder Cattle gain on the Live Cattle as a result of the Grain Report.

Silver: July Silver is currently 1.21 lower at 37.25 after trading as high as 39.40 overnight. Yesterday we took partial profits from recent long positions. June Gold is currently 8.00 lower at 1509.00.

S&P's: June S&P's are currently 3.25 lower at 1350.75. I still feel that this market is in resistance and recommend the short side of the market by being either short futures, short calls or long out of the money puts. Support is currently the 1329.00 area.

Currencies: As of this writing the Euro is 75 lower at 1.4308, the Swiss 30 lower at 1.1323, the Yen 63 lower at 1.2317 and the Pound 106 higher at 1.6449. If you went short the Euro at yesterday's resistance of 1.4402 either take profits or lower your buy stop to the 1.4340 level. Greece, Portugal and Ireland continue to dominate the direction of the Euro as they try to deal with rescheduling debt.

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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