Bonds, gold higher as sequester cuts loom

Financials: June Bonds are currently 24 higher at 144’17 and the 10 Yr. Note 9.5 higher at 131’27. Yesterday the Bonds traded as low as 143’15, just below my near term objective of 143’17 indicating that short positions should either be covered or protective buy stops lowered to 144’03. We are now on the sidelines awaiting an opportunity to initiate a new short position in the 144’26 area.

Grains: May Corn is currently 2’0 lower at 701’4, May Beans13’0 lower at 1439’4, May Wheat1’4 lower at 713’0 and Dec. Wheat 4’0 lower at 735’4. We remain long out-of-the-money call spreads in Dec. Wheat. I will be a buyer in Corn on a 25 cent break.

Cattle: Apr. LC are currently 62 higher at 130.47 and Mar. FC 77 higher at at 142.77 (on Monday I will be quoting Apr. FC). Over the last couple of sessions we have covered short Feeder Cattle hedges and replaced them with put options 2 strike prices out-of-the-money. I remain somewhat negative for the long term on both Live and Feeder Cattle. I will be a seller in Apr. LC above the 131.35 level.

Silver: May Silver is currently $0.23 cents higher at $28.64 after making a new near term low of $27.94. We remain long a small position. Apr. Gold is currently $3.00 higher at $1,581.00 after making an overnight low of $1,564.00. If you went long Gold at yesterday’s recommended support of $1,568.00, take the short term profit.

S&Ps: Mar. S&Ps are currently 6.25 lower at 1507.00. If you went short yesterday either take the short term profit or lower your protective buy stop to your breakeven level. Yesterday we bought the Mar. 1480 put (expiration is 3/15/2013) for about 6.00 ($300).

Currencies: As of this writing the Mar. Euro is currently 56 lower at 1.3009, the Swiss 56 lower at 1.0621, the Yen 11 lower at 1.0779 and the Pound 147 lower at 1.5027. Yesterday we tried the long side of the Pound only to be stopped out at 1.5050 overnight for a loss. The Euro is on new recent lows.

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 Learn even more on our website at

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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