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 (5:30am) June Bonds are 18 lower at 156’30 and 1’22 lower for the week. 10 Year Notes are 8 lower overnight at 131’28, down 18 for the week and the 5 Year notes 3 lower overnight and 10 lower for the week. inversely yields are higher with the 2 year up 2 basis points for the week at 0.17%, the 5 year up 8 for the week at 0.88%, the 10 year up 10 basis points at 1.65% and the 30 year bond up 9 at 2.32. Continued new highs in equities due to Big Tech earnings and optimism fostered by President Biden’s delivery of last nights speech is being looked at as inflationary . We remain short Bonds from above the 158’o level. Either take profits if short or use a buy stop at 157’26. Yesterday the FMOC left rates unchanged and also left unchanged their policy of purchasing approximately 120 billion dollars per month of treasuries and mortgage backed securities. Some analysts were expecting a “tapering” of this policy which could provide support underneath the market due to continued policy of Fed support.
Grains: May Corn and Beans have continued their upside trajectory out pacing differed contracts of both old and new crops. Last week I recommended liquidated old crop contracts and to concentrate on buying breaks in Nov. Beans. Continued poor growing conditions in S. America has slashed estimates of crop yields in Brazil and Argentina.
July corn is up 2’4 over night at 646’0 and up 20’0 for the week. July Beans are up 5’6 at 1519’0, up 10’0 for the week and November Beans are down 2’6 at 1325’2 down about 14’0 for the week. Continue to trade Nov. Beans from the long side on setbacks.
Cattle: Yesterday June LC closed 40 lower for both the day and for the week since my last “Report”. August FC closed 117 lower at 148.90, up 52 since my last report on (4/23/2021). I remain long June LC. Higher feed grain prices have caused a substantial break over the last few weeks and I am admittedly contrarian and bottom picking on this trade.
Silver: July Silver is currently 21 cents higher at 26.33 down just a penny for the week. As mentioned last week I feel this market is not acting very well given the recent uptick in inflation and weakness in the Dollar. I remain short from above the 26.10 level.
S&P: June S$P’s are currently up 30.00 at 4206.00. Big Tech earnings well above analysts estimates keeps this market poised for continued new highs. I remain on the sidelines.
Currencies: Currently the June Euro is down 6 at 1.2131 and up 58 for the week, yen is at 0.91.78 down 25 overnight and 105 lower for the week. The Pound is 8 lower at 1.3939 up 40 points for the week. The Dollar Index is up 7 at 90.67, down 31 for the week. I continue to have a bullish bias on the Pound and Yen and remain negative the Dollar Index. My downside objective on the D.I. Is 89.90.
Please reach out to me if you’d like to learn more about my strategy or get my entry levels.