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 13 higher at 145’14, 10 Yr. Notes 2.5 lower at 121’03 and 5 Yr. Notes 3.5 lower at 113’28.5. Since my last “Report” 2 weeks ago (I had a health issue last week) the yield curve continued to narrow between the 10 Yr. Note and the 30 Yr. Bond forcing us to throw in the towel and take a $3500.00 loss. Yesterday the FOMC raised rates by 25 basis points putting Fed Funds at 2-2.5%. The “Committee” also came out with a somewhat Dovish message and indicated only 2 rate hikes for 2019. They reinforced language from previous meetings and press conferences that the unemployment rate remains low and economic activity remains on the rise and inflation remains near 2%. They also went out of their way to remind us that there is NOT a predetermined path to future rate hikes and rate hikes in the future will remain data dependant. All that being said I will remain on the sidelines until the New Year.
Grains: Mar. Corn is currently 0’4 higher at 382’2, Beans 1’6 higher at 914’6 and Wheat 4’5 higher at 527’2. Not much happening here despite sales of Beans to China and a weakening Dollar which suggests some underlying support, however, these markets do not seem to hold a rally given the supply side of the equation. I remain short Mar. Corn.
Cattle: Live and Feeder Cattle have not moved much over the last 2 weeks. Feb. LC remains in the 122.00 area. I remain short from just above 122.00 in Feb. LC and will gladly take profits below 120.175.
Silver: March Silver is unchanged at 14.82 up about 40 cents over the last 2 weeks. I remain long.
S&P’s: Mar. S&P’s are currently 3.25 higher at 2507.75. This one is an easy decision, if you remain long March 2500 puts, TAKE PROFITS! Beware a Santa Clause rally.
Currencies: As of this writing the March Euro is 80.5 higher at 1.15440, the Yen 50.0 higher at 0.90195, the Pound 50 higher at 1.2733 and the Dollar Index 62.4 lower at 95.860. We remain long Yen and short the Dollar Index.