Bonds struggle as bias remains negative

Financials: Mar. Bonds are currently 10 lower at 143’22 and the 10 Yr. Notes 4 lower at 131’25. By the end of the week the June contract will be considered lead month, which is currently trading at a 1’16 discount to the Mar. contract at 142’06. For today, I’m still looking at the Mar. contract as a trading affair between 142’16 and 144’06. My bias remains long-term negative and I will look at a rally this week, if the market allows, to the 144’06 level on the JUNE contract as an opportunity to establish a short position.

Grains: MAY Corn is currently 2’4 lower at 681’6, MAY Beans fractionally lower at 1443’4, MAY Wheat 5’2 lower at 713’4 and DEC. Wheat 4’6 lower at 741’6. We continue to hold out-of-the-money call spreads in Dec. Wheat. I will be a buyer in May Corn in the 670’0-765’0 area and/or July Corn below the 655’0 level.

Silver: MAY Silver is currently $0.47 higher at $29.00 and Apr. Gold is $15.00 higher at $1,588.00. We remain long Silver having rolled Mar. contracts into the May contract. If you went long Gold last week, either take profits or raise your protective sell stop from the $1,550.00 level to the $1,582.00 area.

S&Ps: Mar. S&P’s are currently 7.00 higher at 1521.00. We are taking a short position this morning with a protective buy stop above the contract high of 1530.00. The market is currently in short-term resistance with initial support at 1513.50 and below this level 1507.00.

Currencies: As of this writing the Mar. Euro is currently 123 higher at 1.3304, the Swiss 61 higher at 1.0810, the Yen 64 lower at 1.0643 and the Pound 121 lower at 1.5115. We have been stopped out of any remaining short Euro positions when the Euro first traded above the 1.3280 level.

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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