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 21 higher at 145’20, 10 Yr. Notes 9.5 higher at 121’22.0 and 5 Yr. Notes 5.25 higher at 114’11.25. The long June 19/short Dec. 19 Eurodollar spread is currently 2 points premium the June contract. For the most part these markets have had an inverse relationship with equities i.e., when equities go down, treasuries go up and vice versa, My objective for the June/Dec. Eurodollar spread of 5 points premium the June was met momentarily over the last week and we took profits at 4.5 premium the June.
Grains: Mar. Corn is currently 0’4 lower at 378’2, Mar. Beans 2’0 lower at 913’0 and Mar. Wheat0’4 lower at 525’4. These markets still do not hold much interest for me as they drift in a sideways pattern. Also, the lack of transparency due to the lack of government reports visa vie the gov’t shutdown keeps me away.
Cattle: Yesterday Feeder Cattle closed sharply higher as Live Cattle put in a tepid performance losing 150+ points to the Feeders. In my opinion these markets did exactly what the powers of supply and demand Econ. 101 says they should be doing. The cold weather is slowing down the rate of weight gain for Feeders, while market ready Live Cattle will experience a cut in demand and possible build up of product as people tend to stay home, shopping less. That being said, I am looking to put on the long April LC/ short April FC spread at 20.00-21.00 premium the FC (now at 18.175) believing it will warm up in the near future. We remain net short Feb. LC from 122.50
Silver: Mar. Silver is currently 10 cents lower overnight at 15.28. We were stopped out of ½ of our long position when the market traded through the 15.38 level. I will replace those contracts should the market trade below 15.16.
S&P’s: Mar. S&P’s are currently 5.00 higher at 2643.00. I am still recommending being long Puts and/or Put spreads 50-100 handles out of the money.
Currencies: As of this writing the March Euro is currently trading 65 lower at 1.13695, the Yen 3.5 lower at 0.91600, the Pound 35 lower at 1.3070 and the Dollar Index 36.8 higher 96.14. We remain long the Yen and short the Dollar Index.