Bonds search for direction as stocks turn higher

Financials: June Bonds are currently 5 lower at 148’09 and the 10 Yr. Note 1.5 lower at 133’03.0. As I mentioned in my last “Report” this market is looking for direction having been in a range of 147’00-148’00. The market has since broken out somewhat to the upside trading as high as 148’22 and then backing off to the 147’17 level before rallying back to current levels as the market has seesawed in tandem with breaks and rallies in equities and the Dollar. To be honest I’m staying on the sidelines and concentrating on other markets at the moment. Technically the trend is up as long as the market holds above the 146’08 level. The next level of resistance is the 149’05 level and then the 151’00 area if the market holds above 149’05.

Grains: This morning May Corn is currently 2’4 higher at 647’0, May Beans unchanged at 1430’4 and May Wheat 3’2 lower at 699’4. Starting Monday I will be quoting July contracts. I remain on the sidelines as far as speculative futures positions are concerned.

Cattle: June LC are currently 20 lower at 121.17 and May FC 80 lower at 139.20. These markets still appear not ready to hold onto rallies. That being said, I feel that if June LC trade below the 118.50 level it will present a buying opportunity as the market comes near long term support established last August near the 118.00 level based upon a lead month continuation chart.

Silver: May Silver is currently $0.13 higher at $23.37 and June Gold is $10.00 higher at $1,402.00. We continue to hold a small long position in Silver. As pointed about by a few readers, I neglected to mention a trading loss from the other day as I recommended going long Gold below the $1,400.00 level with a protective sell stop just below the $1,385.00 level. For the moment treat as a trading affair between $1,360 and $1,430.

S&Ps: June S&Ps are currently 6.25 higher at 1540.25. We continue to hold the combination of short futures and short the June 1520 put. Support is currently 1529.50 and resistance 1554.50.

Currencies: As of this writing the June Euro is currently 37 higher at 1.3091, the Swiss 20 higher at 1.0752, the Yen 110 lower at 1.0087 and the Pound 51 higher at 1.5331. The Yen continues it downward trend as they continue the printing presses to satisfy their quantitative easing measures to stimulate inflation in the hopes of growth. The June Dollar Index is currently 5 lower at 82.63. We were stopped out of any remaining short positions when the market rallied through the 82.54 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.

Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome