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Financials: June Bonds are currently 0’1 higher at 147’20, 10 Yr. Notes0’03.5 lower at 123’15.0 and 5 Yr. Notes 0’04 lower at 115’13.0. During the last week I recommended the long Dec2019 / short Dec. 2020 Eurodollar spread at -27 points to the 2019 contract. I feel that the 2020 contract is at an excessive discount to the 2019 contract and even if the Fed either raises or lowers rates this spread will narrow over time. My initial objective is -16 points. I am still looking at both buying and/or selling Bonds on an extreme move, either going long below 144’15 or short above 149’15.
Grains: July Corn is currently fractionally higher at 368’6, Beans 2’4 lower at 849’2 and Wheat 4’0 higher at 440’0. Last week I recommended the long side for Corn on a break. If you went long (the market traded below 360’0 several times) look for a profit taking opportunity. I feel the current rally is mostly due to concerns about yield given the recent deluge of wet weather.
Cattle: Live and Feeder Cattle worked sharply lower over the last week given increased marketing’s and a lack of resolution with Chinese trade war. We have been long the June Cattle 116 put/ short the 114 put spread from 42 points. This spread is currently in the money (June Cattle settlement yesterday was 113.975). I recommended last week taking profits above 90 points, yesterday’s settlement was 1.075. Take profits.
Silver: July Silver is currently 5 cents lower at 14.68. Silver, along with most other metals, has been battered of late despite a recent weakening of the Dollar. Given the recent break I am still willing to hold a small position in my “portfolio”.
S&P’s: June S&P’s are currently 3.00 higher at 2926.00. Given yesterday’s range of 2961.0-2916.00 we may have put in a short-term top. I remain on the sidelines.
Currencies: AS of this writing the June Euro is 12 higher at 1.1255, the Yen 9 higher at 0.89990, the Pound lower at 1.3076 and the Dollar Index 7 lower at 97.340. I remain short the Dollar Index from above 97.00 and will use a protective buy stop above the recent high at 98.200.