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 (6:15am) December Bonds are 1 lower at 174’10 up3 points for the week, 10 Year Notes down 1 at 138’27 up 1 for the week and the 5 Yr. unchanged for both over night and for the week. Yields are as follows: 2 Yr. 0.15% up 1 basis point for the week, 5 Yr. at 0.33% steady for the week, 10 Yr. Notes at 0.77% steady for the week and the 30 Yr. Bond 1.54% up 1 basis point for the week. These weekly figures do not tell the whole story as Bonds had quite a week with a low of 170’17 and a high of 175’27 as the market gyrated sharply in response to a rise in the dollar and consequential weakening in the Dollar, continuing surging of the Covid virus which had a record daily amount of positive cases ( yesterday 120,000), the re-shutting down of many small businesses and finally yesterday’s FOMC announcement of no change in interest rates and the prospect of a Biden win in the Presidential election also added volatility to treasuries as well as equities and currencies. The Fed repeated it’s mantra of keeping rates near zero and hoping that inflation returns to 2.5%. I still do not see much opportunity in these markets as long as the Fed continues their bond buying directive in order to keeps near 0-0.25%. Don’t fade the fed.
Grains: December Corn is up 1’4 at 410’6 up 12 cents for the week, November Beans up 3’2 over night at 1107’0 up 54 cents for the week and wheat up 4’2 at 613’0 up 11cents for the week. Good export demand and a sharply lower Dollar both helped push these markets to new recent highs. I remain friendly to Corn and Beans.
Cattle: December Live Cattle closed 47 higher at 108.35 up about 350 for the week and March Feeder Cattle closed 12 lower at 134.75 up about 500 for the week. Short covering and a pick up in demand for boxed beef helped rally these markets. Of note: The spread between choice and select cuts of beef has been narrowing. I still have a negative bias to these markets.
Silver: Dec. Silver is 70 cents higher at 25.89 up $3.23 for the week. This market still moves in tandem with the Dollar, rallying when the Dollar breaks and breaking when the Dollar rallies. I still prefer to trade the Dollar Index as a proxy for Silver because of volatility issues.
S&P: December S&P’s are 20.00 lower at 3487.75. I must admit I’m as surprised as anyone by the recent dramatic rally and admit that I am infected with shoritis. I am standing aside.
Currencies: The Euro is 44 higher at 1.1805, the Yen 25 higher at 0.9691, the Pound 2 lower at 1.3145 and the Dollar Index 30 lower at 92.21. I continue to have a negative bias on the DI which is now on a 2 year low. Support is 88.10.
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MarcQuestions? Ask Marc Nemenoff today at 312-264-4310