Stocks struggle after disappointing Apple earnings

Financials: Mar. Bonds are currently 12 higher at 146’11 and the 10 Yr. Note 6.5 higher at 132’16.0. As expected a suspension of the Debt Ceiling was passed and the issue will be revisited in a few months. An overnight break in equity indexes, particularly the tech weighted Nasdaq has pushed Bonds to the upside. I’m still looking at a rally to the 146’20-147’04 area as a selling opportunity for a short term (1-4 days) trade. Support remains at 144’24.

Grains: Mar. Corn is currently 5’4 lower at 715’2, Mar. Beans 14’6 lower at 1437’0, Mar. Wheat 9’0 lower at 765’6 and Dec. Wheat 9’2 lower at 805’0. As mentioned over the last few weeks I will be a buyer on a break to the 707’0-712’0 area for a short term trade in Mar. Corn. Resistance has been lowered a bit to the 734’0 level from 740’0. If support does not hold in the 707’0-712’0 level the next level of support will be the 697’0 area. Consider going long out of the money call spreads in Dec. Wheat for a long term trade.

Cattle: Apr. LC are currently 10 higher at 130.55 and Mar. FC 17 lower at 146.975. If you went long on yesterday’s break either take profits or raise your protective sell stop to the 129.95 level in Apr. LC and/or 146.225 in Mar. FC.

Silver: Mar. Silver is currently $0.66 lower at $31.78 and Apr. Gold $15.00 lower at $1,673.50. We remain long Silver. Gold is once again nearing support in the $1,645.00-$1,657.00 area, levels where I’m willing to once more trade from the long side of the market.

S&Ps: Mar. S&Ps are currently 3.00 lower at 1487.50. The market is on the defensive this morning, particularly the tech heavy Nasdaq 100 index which is nearly 1.5% lower in the wake of Apples earning that were flat and below expectations. My bias remains negative and I continue to recommend a small short position or out of the money puts. Yesterday the S&P’s made a new contract high at 1491.50.

Currencies: As of this writing the Mar. Euro is currently 30 higher at 1.3355, the Swiss 18 lower at 1.0745, the Yen 144 lower at 1.1140 and the Pound 64 lower at 1.5772. If you remain short the Euro either take profits or continue to use a protective buy stop at 1.3365 (the overnight high is currently 1.3364). Once again I’m looking to the long side of the Yen on any further break as a contratrend short term trade with a protective sell stop just below the recent low of 1.1086 made January 22nd.

About the Author
Marc Nemenoff

Mr. Nemenoff is a 40-year veteran of the futures industry. While attending graduate school at the Illinois Institute of Technology, Marc took a job as a clerk on the trading floor of the Chicago Mercantile Exchange. Over the years he grew to become an independent member of the exchange and spent many years as a trader, market maker, lecturer, and committee member. Since 2004 Marc has been a senior broker and analyst handling customer accounts for both speculators and hedgers in addition to institutional traders. Marc is also the author of The Nemenoff Report, a daily overview of the markets that includes his own perspective on market direction. Mr. Nemenoff describes his approach to the market as 75% technical and 25% fundamental and is also a firm believer in the use of option strategies as a way of using leverage and minimizing risk when one has a long-term market strategy. You can contact Marc by phone at (888) 908-4310 or by email at mnemenoff@pricegroup.com. Learn even more on our website at www.pricegroup.com.

Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented by The PRICE Futures Group is from sources believed to be reliable and all information reported is subject to change without notice.

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