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 1’0 higher at 173’04, 10 Yr. Notes 0’13 higher at 136’13.0 and 5 Yr. Notes 0’07.5 higher at 123’26.75. Early in the week the fed lowered rates by .50% pushing these treasuries to new highs while yields made historic lows, citing the unknown economic consequences of the coronavirus. The 5 Yr. is now at .69%, the 10 Yr. o.94% and the 30 Yr. 1.60%. Some pundits are speculating on another rate cut at FOMC meeting March 17-18. I have my doubts. That being said, I am changing my bias from friendly to stand aside. Be on the outlook for competitive rate cuts across the globe.
Grains: May Corn is currently 3’6 lower at 381’2, Beans 5’0 lower at 902’2 and Wheat 1’6 lower at 517’0. Last week we went long Corn. This week I am willing to take the short-term profit. It appears to me that there is too much risk of the unknown i.e. the “Virus” as to how it will affect export demand.
Cattle: Live and Feeder Cattle worked higher for the week and may have put in a bottom. Support for April LC is 107.00 and resistance 113.00. I am a buyer on breaks.
Silver: May Silver is 3 cents higher at 17.28 and down 86 cents since last Thursday as nearly all markets sank in response to global economic slowdown in the form of the Coronavirus. I remain long.
S&P’s: Mar. S&P’s are 64.00 lower at 3050.00. Too volatile to trade! If you still have short biased option positions either take profits or roll into lower strike prices.
Currencies: As of this writing the Mar. Euro is 43 higher at 1.11875, the Yen 42 higher at 0.93650, the Pound 50 higher at 1.2921 and the Dollar Index 32.7 lower at 96.880. We remain long biased the Euro and Pound and short biased the Dollar Index.