Marc Nemenoff gives his readers an insight into the decision making process of a professional trader and analyst with 35+ years of market experience. He covers the markets with which he has had the best success throughout his career with. Contact Mr. Nemenoff at (312) 264-4310
Financials: Mar. Bonds are currently 10 lower at 152’00, 10 Yr. Notes 5 lower at 123’20 and 5 Yr. Notes 3.5 lower at 115’28. The long Dec.2018/short Dec. 2019 Eurodollar spread is currently at 20.5 premium the 2018 contract. In my last “Report” I recommended putting on the Eurodollar spread at 16.5. As it turns out this is about the best you would have been able to do the spread (even a broken watch is right twice a day). I will be looking to take profits should the spread trade at 26 premium the Dec.2018 contract. I will also be looking to go short the 10 Yr. Note above 124’08. Yesterday’s release of the Dec. FOMC minutes showed broad consensus for 3-4 rate hikes this year and expectations of a rate hike of 25 basis points in Mar. is currently being built into the market.
Grains: Mar. Corn is currently fractionally lower at 352’6, March Beans 2’0 lower at 966’6 and Mar. Wheat 1’6 lower at 434’2. We are long Corn from the 347’0 area with an initial objective of 363’0.
Cattle: We ended the year long Feb. LC from the 117.75 level and took profits above the 120.00 level before the end of the year. Cold weather has boosted the market to the 123.00 basis Feb. and actually took the expired Dec. contract above 125.00 as the cash market rallied 4-5.00 last week. I feel for the moment we have good resistance in the 123.40 area and will look to trade from the short side above 123.00.
Silver: Dec. Silver is currently 10 cents lower at 17.16. This up 1.10 from my last report, Dec. 14th. We remain long.
S&P’s: Dec. S&P’s are currently 6.50 higher at 2717.50, new all time high. I remain on the sidelines.
Currencies: As of this writing the Mar. Euro is 45.5 higher at 1.21135, the Yen 14.5 lower at 0.89045, the Pound 25 higher at 1.3572 and the Dollar Index 27.1 lower at 91.625. If you went short the Pound above 1.3620 either take profits or use a protective stop at 1.3605. My near term downside objective of the 91.00-91.50 has almost been met, longer term my objective is the 88.00 area. If you are short look for profit taking opportunities involves substantial risks.
Questions? Ask Marc Nemenoff today at 312-264-4310
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