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: Dec. Bonds are currently 5 lower at 142’31, 10 Yr. Notes 1 lower at 119’29.5 and 5 Yr. Notes unchanged at 113’07.5. Last week we recommended reinstating a short position in treasuries should the Dec. Bonds trade as high as the 144’24 area. As luck would have it on Friday August 31st the Bonds made a high of 144’24. If you went short either Bonds, 10 Yr. or 5 Yr. Notes either cover the position or use a protective buy stop 10 ticks above the market in the Bonds, 7 ticks above the market in the 10 Yr. and 4 in the 5 Yr. This will put us on the sidelines for the moment.
Grains: Dec. Corn is currently fractionally lower at 364’4, Nov. Beans 1’4 higher at 83’2 and Dec. Wheat 2’6 lower 519’0. The numbers to watch over the next few weeks as harvest begins will be the yield per acre. The average estimate that I’m hearing is in the 177-180 bushels per acre for Corn which will give us a good-sized crop but probably not a record. I am currently on the sidelines awaiting the market to trade at an extreme of the 350’0 area to be a buyer or 382’0 to be a seller in Dec. Corn.
Cattle: Oct. Live Cattle had an active week trading in a range of just below 106.50 and just above 110.50. I remain a supply Bear for the moment continuing to be a seller in Oct. LC above the 109.500. That being said this is the third or fourth time we has visited this trade and my bearishness is beginning to be tempered and I will use a protective buy stop a 111.35 and/or take profits below 108.25. Should the market trade below108.25 and you want to stay in, lower your stop to 109.075.
Silver: Dec. Silver is currently 10 cents higher at 13.32, down 41 cents since last week’s “Report”. In this time period we were stopped out of a long position when the market traded through the 14.295 level. We reinstated the position on a further break below the 14.15 level as the market made a low of 14.035. The market has since rallied to current levels. I will use a protective stop at 13.98 and will raise my stop to 14.10 should the market trade above 14.53
S&P’s: Dec. S&P’s are currently 1.00 higher at 2889.25. The market has sold of from highs above the 2917.00 level possibly due to contagion as emerging markets continues a multi month sell off. Treat as a trading affair between 2862.00 and 2912.00
Currencies: As of this writing the Dec. Euro is currently 17 higher at 1.17335, the Yen 26 higher at 0.90600, the Pound 54 higher at 1.3009 and the Dollar Index about 19 lower at 94.54. During the last week we were able to buy the Pound under 1.2850. Either take profits or raise your stop from 1.2735 to 1.2915.