Financials: Mar. Bonds are currently 1’04 lower at 144’23 and the 10-year Note 16 lower at 131’23.5. My bias remains negative, that being said, the market is currently trading at support. If you were aggressive and sold yesterday morning’s early rally, cover your position. Short term traders might consider trying the long side of the market at current levels with a protective sell stop at 144’12.
Grains: Mar. Corn is currently 6’2 lower at 718’0, Mar. Beans 8’0 lower at 1427’2, Mar. Wheat 3’0 lower at 765’4 and Dec. Wheat 5’0 lower at 801’6. I am still biased to the long side of Mar. Corn on a break to the 707’0-712’0 area. Resistance remains in the 734’0 area. Consider going long out-of-the-money call spreads in Dec. Wheat.
Cattle: Apr. LC are currently 57 higher at 130.925 and Mar. FC 40 higher at 148.35. These markets have had a pretty good run to the upside in the last few days. Take profits ahead of this afternoon’s Cattle on Feed Report. “Better to be out too early than too late.”
Silver: Mar. Silver is currently 15 cents lower at 31.57 and Apr. Gold $10.00 lower at $1,660.00. We remain long Silver. Gold is nearing support in the $1,645.00-$1,657.00 area, levels where I am willing to try the long side of the market with a protective sell stop in the mid-$1,620s. A close below the $1,627.00 level could negate upside momentum.
S&Ps: Mar. S&Ps are currently 3.00 higher at 1494.75. We are still short a small position. Long term resistance is currently the 1502.00-1507.00 area. The contract high is currently 1497.75.
Currencies: As of this writing the Mar. Euro is trading 91 higher at 1.3470, the Swiss 39 higher at 1.0818, the Yen 121 lower at 1.0998 and the Pound 18 higher at 1.5805. We have been stopped out of any remaining short Euro positions when the market traded above the 1.3365 level. Yesterday we tried the long side of the yen and were stopped out when the market traded below the 1.1086 level. The Yen is now approaching long term support at 1.0800.
About the Author
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.