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 16 lower at 139’17, !0 Yr. Notes 8.5 lower at 119’02.5 and 5 Yr. Notes 6.25 lower at 112’24. Yesterday the Dec. Bonds traded above the 140’00 level as the market turned to treasuries as a safe haven given the route that the global equities have taken over the last week. This action gave us a good enough rally to reinstate our yield curve spread of long 5-10 Yr. Notes/ short 3-30 Yr. Bonds. We currently have a small profit but will wait until at least mid next week to take any kind of action. Also on my radar are the June 19/Dec. 19 Eurodollar spread and the June 19/June 20 Eurodollar spread. For the moment I will buy the Dec. 2019/ sell the June 2019 Eurodollar spread at 18-19 points premium the June 2019.
Grains: Dec. Corn is currently o’4 lower at 360’4, Jan Beans 3’2 lower at 877’6 and Dec. Wheat 1’0 lower at 499’6. We still favor the short side of these markets, although, ,currently we have no positions as the market did not rally enough to levels where I would have been comfortable being short
Cattle: Live and Feeder Cattle are higher for the last week despite yesterday’s sympathetic selloff that influenced most markets. Last week I recommended taking profits from long Dec. LC positions in the 115.20 area or use a protective sell stop at 114.725. Both of these numbers were hit taking us out of the market. If you stayed long take profits. I am once again returning to the sell side of the market and will be a seller in Feb.LC above 122.00
Silver: Dec. Silver is currently 15 cents higher at 14.42 up 31 cents since my last Report. We remain long.
S&P’s: Dec. S&P’s are currently 22.00 higher at 2662.00, down 36.00 for the week. I recommend taking profits from all short biased future and option positions.
Currencies: AS of this writing the Dec. Euro is currently 41.5 at 1.14320, the Yen 23.5 lower at 0.88630, the Pound 9 higher at 1.2809 and the Dollar Index 24.1 lower 96.475. We remain long the Yen and short the Dollar Index.