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 0’21 higher at 168’24, 10 Yr. Notes 0’10.0 higher at 133’20.5 and 5 Yr. Notes 0’07.25 higher at 121’14.50. It’s all about the Coronavirus, as manufacturing and travel in China and other places, such as Italy, S. Africa, and Iran came to a standstill as 1st quarter earning estimates were downsized across the Board especially in travel related stocks and those companies dependent on China for manufacturing. As equities fell, Treasuries surged to new highs and record low yields. The 2&5 Yr. Notes both yield approx.1.14%, the 10 Yr. Note 1.31% and the 30 Yr. Bond 1.71%. I remain cautiously friendly and must admit that my upside target of 165’10 was literally blown through. I am currently on the sidelines. Next week I will be quoting June contracts.
Grains: May Corn is currently2’6 lower at 371’6, Beans 4’6 lower at 887’2 and Wheat 4’4 lower at 530’4These markets are still in a downtrend but near long-term support. I’m going with the long side in May Corn.
Cattle: Live and Feeder Cattle were sharply lower for the week, due in no small part to the continued risk of “the Virus”. I’m going to liquidate recent long positions and take a wait and see attitude towards what I feel should be upside potential for April contracts.
Silver: May Silver is 20 cents higher over night at 18.12, down 24 cents for the week. I remain long.
S&P’s: Mar. S&P’s are 42.00 lower at 3068.00. The uncertainty surrounding the Coronavirus and the financial consequences have caused a flight to safety out of equities and into Treasuries, breaking the S&P’s 270.00+ points in the last week. If you are long either Put options or put spreads either take profits or move to lower strike prices in to take some profits. “You don’t make the money till you take the money”
Currencies: As of this writing the Mar. Euro is 61 higher at 1.09730, the Yen 37 higher at o.91080, the Pound 11 lower at 1.2906 and the Dollar Index 42.3 lower at 98.535. The Euro and the Pound had a small rally over the last week and the Dollar Index a small break which has allowed me to stay long the Euro and Pound and short the DI. I reccomend using close stops.