Financials: Mar. Bonds are currently 0’23 higher at 162’31, 10 Yr. Notes 0’09.5 higher at 131’10.0 and 5 Yr. notes 0’05.00 higher at 120’01.75. Due to the coronavirus in China treasuries are substantially higher as market participants sought safe haven from a possible pandemic and demand destruction. As to date there are 170+ deaths and 7,000+ infected in the Wuhan area. There are now an estimated 50 million people in a sense quarantined and exports are suffering along with airlines (bearish energies) as travelers cancel flights for fear of infection. This is the type of “Black Swan event” one cannot prepare for. Support is 159’15 and resistance 165’10.
Grains: Mar. Corn is 3’6 lower at 380’4, Beans 4’2 lower at 888’4 and Wheat 6’0 lower at 556’2. Like most other commodities the grains are experiencing a sell off because of the corona virus. That being said, I’m still waiting for a sharp break to be a buyer.
Cattle: As with the Grains Live and Feeder Cattle sold off sharply, well beyond my expectations. At this stage of the game I’m looking for buying opportunities as domestic demand appears good as evidenced by the 5% increase in marketing that was shown on last Fridays Cattle on Feed Report.
Silver: Mar. Silver is currently 26 cents higher overnight and 3 cents higher for the week. I remain long.
S&P’s: Mar. S&P’s are 28.50 lower at 3244.00. This market has turned negative as participants continue to sell because of possible pandemic switching to “risk off” positions. Think puts or put spreads.
Currencies: As of this writing the Mar. Euro is 9 higher at 1.10600, the Yen 17.5 higher at 0.92100, the Pound 71 higher at 1.3113 and the Dollar Index down 10.9 at 97.710. I still like the Euro and Pound. I remain negative the Dollar Index