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: June Bonds are currently 12 lower at 145’02, 10 Yr. Notes 4.5 lower at 120’15 and 5 Yr. Notes 4.2 lower at 113’31. The populist appeal of Italy leaving the Euro and the troubled state of the Italian governing body has led to a flight to safety in U.S. treasuries. The result has been a drop in 10 Yr. rates. The yield in the 10 Yr. is back to 18 basis points below the 30 Yr. If you are still in the short 2 Bonds /long 5 10 Yr. Note spread take profits (since May 3rd recommendation the spread has gained approx. $1100). The long dec 2019/short Dec. 2018 Eurodollar spread has reached my objective of 31 pt. premium Dec. 2018, take profits. Today is 1st. notice day for June contracts, we are now on the sidelines.
Grains: July Corn is currently 1’4 higher at 395’0, Beans fractionally higher at 1023’2 and Wheat 2’4 lower at 519’4. I am on the sidelines.
Cattle: Last weeks’ Cattle on Feed Report was in line with estimates with placements coming in at 92% of a year ago. The initial reaction was negative, but we have since rallied as the cash holds above 108.00 and we approach an expiring June contract over the next 30 days. I remain a buyer below 103.00 in June LC and below 100.00 in Aug. LC. I am a seller above 108.00 in both June and Aug. LC. For the long-term I am a buyer of Dec. LC on a break of 4.00+ should the market set back.
Silver: July Silver is currently 3 cents higher at 16.59. I remain long. I want to note that Silver has held up fairly well despite an overall strong Dollar and rising % rates.
S&P’s: June S&P’s are currently fractionally higher at 2725.00. I continue to recommend short biased positions. Support is currently 2702.00 and resistance 2742.50.
Currencies: As of this writing the June Euro is 36 higher at 1.1704, the Yen unchanged at 0.91960, the Pound 57 higher at 1.3347 and the Dollar Index 27 lower 93.845. We are short the Dollar Index from just above the 93.20 level, long the Euro from below 1.1725 level and long the Pound from below 1.3400. I will be rolling these positions into Sept. contracts next week.
Questions? Ask Marc Nemenoff today at 312-264-4310