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: As of this writing (6:00am) December Bonds are 7higher at 173’10 down 2’22 for the week, 10 Yr. Notes unchanged at138’18 down 26 for the week and 5 Yr. Notes unchanged at 125’21 down 9 for the week. Yields are higher for the week as both treasuries and the dollar sold off as a result of the possibility of a second wave of the Covid virus seems to becoming a reality as well as the possibility of a Blue Wave election. Bonds are in support under 113’15. I recommend the sidelines until after the elections.
Grains: December Corn is 0’6 higher at414’4 up 17’0 for the week, November Beans use up0’6 at 1076’0 up 24’0 for the week and December Wheat down 3’6 at 626’0 up 23’0 for the week. The trend remains up as the 402’0 resistance level on December Corn was handily penetrated. An increase in exports (particularly to China) seems to have put a floor under the market that exceeds harvest pressure. I remain a buyer on breaks.
Cattle: December Live Cattle closed yesterday down 87 at 104.57 down 570 for the week. November Feeder Cattle closed up 37 at 131.15 down 512 for the week. Lower trending boxed beef prices and potential reclosing of several meat packing plants due to a resurgence of the “virus” has added downside pressure as cattle marketings back up and beef inventories build. I am looking for a break to cover short positions and be flat going into the election. Estimates for the upcoming Cattle on Feed Report are as follows: On feed 103.5% of a year ago, placements 102.4% and marketings 105.8%.
Silver: December Silver is currently down 23 cents at 25.01 up $1.04 for the week. I am still on the sidelines because of volatility. Large price swings seem to have more to do with swings in the relative value of the Dollar than flights to a safe haven. I would rather trade the dollar as a proxy to the precious metals.
S&P: December S&P’s are 7.00 lower at 3425.50 down 15.00 for the week. Treat as a trading affair until the election. You might consider buying out of the money puts for portfolio insurance and protection of assets.
Currencies: The December Euro is down 20 points over night and up 95 for the week, the Yen down 9 for the day at 0.9562 up 57 for the week, the Pound down 45 but up 217 for the week at 1.3118 and the Dollar Index down 20 at 92.80 down 91 for the week. The Pound is now in resistance. I continue to have a negative bias on the Dollar.
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MarcQuestions? Ask Marc Nemenoff today at 312-264-4310