Marc Nemenoff
(312) 264-4310
Financials: Mar. Bonds are currently 2 lower at 143’30 and the 10 Yr. Notes unchanged at 131’06. This morning’s weekly Jobless claims Report showed an increase of 24,000 vs. expectations of 8,000. Over night yields set back on successful Spanish and Italian bond auctions. Seeing as yesterday’s close in the mar. Bonds was above the 143’26, my negative bias has been negated, putting me on the sidelines. We continue t hold the lng 5 Yr. Not/ short 10 Yr. Note spread which is currently trading at 7’24 premium the 10 Yr. Note.
Grains: Yesterday Mar. Beans closed 29 cents lower, Mar. Corn fractionally lower and Mar. Wheat 1 higher. This morning’s Grain Report: Corn production was 12.358 billion bushels vs. expectations of 12.280bb. Ending stocks were 848 million bushels vs. expectations of 848mb. Soybean production was 3.056 billion bushels vs. expectations of 3.042 bb. Ending stocks were 275 million bushels vs. expectations of 233mb. These figures were negative to the market, consequently the Grains are call sharply lower. I am canceling my recommendation to buy the July Corn 700 call/750 call spread at 13’0. I expect any remaining long Mar. Corn postitions will be stopped out this morning as the opening call is below the 536’0 level.
Cattle: Feb. LC are currently unchanged at 121.32 and Mar. FC 50 higher at 151.37, reflecting a lower Grain opening. My bias remains to the downside and I am recommending the short side of the market with a 300 pt. protective buy stop.
Silver: Mar. Silver is currently 50 cents higher at 30.39 and Feb. Gold 17.00 higher at 1655.00 I am recommending out of the money call spreads.
S&P’s: Mar. S&P’s are currently 1.25 lower at 1287.00. We remain short from the 1289.00 level with a protective buy stop at 1303.00. If the market trades below the 1284.00 level, lower your buy stop to your break even level.
Currencies: As of this writing the Mar. Euro is currently 100 higher at 1.2800, the Swiss 105 highier at 1.0585, the Yen 20 higher at 1.3040 and the Pound 25 higher at 1.5331. Positive results in Spanish and Italian bond auctions could carry the Euro even higher. We remain long out of the money puts in the Euro and the Yen and will reconsider this position over the next couple of sessions.
Regards,
Marc
Questions? Ask Marc Nemenoff today at 312-264-4310
