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: June Bonds are currently 19 higher at 150’10, 10 Yr. Notes 7 higher at 124’21 and the 5 Yr. Notes 4.5 higher at 116’04. Yesterday’s release of the FOMC minutes, in my opinion, did not give us much of an idea on future rate hikes or rate reductions. Pressure from the President seems to be holding the Fed back from a rate hike (I’m not saying if this is good or bad, just an observation) given a nearly full work force and some inflation. I am still holding short positions above the 149’15 level and continue to hold the long Dec.19/ short Dec.20 Eurodollar spread. These positions are carrying a small loss.
Grains: July Corn is currently 2’0 higher at 396’4, Beans 1’0 higher at 829’4 and Wheat 7’0 higher at 479’6. Corn has gained 20 cents in the last week as Beans slumped 12 cents. Conventional wisdom says that the delayed planting due to extremely wet weather might lead some farmers to plant Beans instead of Corn. I feel the upside in old crop (July) Corn has about played itself out. I am a seller in July Corn at current levels with a 10 cent risk and a 7-15 cent short term profit objective.
Cattle: The cash market has slid another 2.00 to about 115.00. Live and Feeder Cattle futures have worked slightly higher over the past week. I am looking to take profits on my short Aug. LC 102.00 put position under 100 points and stand aside at the moment but feel we are going into a sideways market.
Silver: July Silver is currently 4 cents higher at 14.495. WE remain long and will add on any further breaks with a stop at 13.80 on additional contracts.
S&P’s: June S&P’s are currently 25.00 lower at 2832.50. “Trade war” and lack of any sustainable remedy is keeping pressure on equities. Treat as a trading affair between 2812.00 and 2870.00.
Currencies: As of this writing the June Euro is 24.5 lower at 1.11595, the Yen 24 higher at 0.91085, the Pound is 9 lower at 1.2656 and the dollar Index 16 higher at 98.05. We remain short the Dollar Index and must acknowledge that it is close to my stop at 98.20.