Financials: June Bonds are currently 11 lower at 143’08 and the 10 Yr. Notes 5 lower at 131’11. Bonds have been gyrating over the last few sessions on just about every news item out of Cyprus. Since Monday the Cypriot congress voted against levies on bank deposits and have been in talks with the Russians about assistance in raising the €5.8 billion needed to secure an additional €10 billion bailout for potential recapitalization of banks. The nervousness of the market is not necessarily the failure of Cypriot banks but the systemic problems that could arise with the precedent of a levy on bank deposits in general. If you went short at Monday’s stated resistance of 143’28 (recent high 143’30) take the short term profit.
Grains: May Corn is currently 3’0 higher at 731’0, May Beans 10’0 higher at 1416’6, May Wheat 9’0 higher at 731’0 and Dec. Wheat 7’6 higher at 746’2. We remain long out-of-the-money call spreads in Dec. Wheat. Interestingly May Corn and May Wheat are now at even money, this spread should be watched for a breakout in one direction or another. Personally I’m leaning toward Wheat gaining on Corn but not as yet willing to take a position. May Corn is approaching long term resistance above the 740’0 level, an area where I am willing to try the short side of the market.
Cattle: Live and Feeder Cattle continue their recent slide this morning with Apr. FC down 67 points at 139.72, Apr. LC 10 higher at 125.40 and June LC 10 lower at 120.87 each at or near contract lows. Long term support for Live Cattle is the 118.00 area, levels last traded in Aug. and Sept. 2012. I will be a buyer in June LC below the 118.75 level.
Silver: May Silver is currently is currently $0.05 lower at $28.82 and Apr. Gold (next week we will be quoting June Gold) is $3.50 lower at $1,607.80. We remain long silver. Gold has turned up for the short term with support now in the $1,592.00 area where I will be willing to try the long side of the market with a 10.00 risk.
S&Ps: June S&Ps are currently 8.25 higher at 1550.50. Support is currently 1536.00 and resistance the 1557.00 area. Treat as a trading affair between support and resistance.
Currencies: As of this writing the June Euro is trading 63 higher at 1.2947, the Swiss 36 higher at 1.0600, the Yen 49 lower at 1.0472 and the Pound 39 higher at 1.5133. The June Dollar Index is currently 31.6 lower at 82.896. Possible toppy action in the Dollar Index. Short term traders might consider going short the Dollar Index on a rally with a protective buy stop at 83.47.