Bonds Higher, S&P's Higher, Silver Higher

Financials: June Bonds are currently 14 higher at 134’12 and the 10 Yr. Note 8 higher at 123’28. We continue to hold the long 10 Yr./short Bond spread in the belief that at some point rates will edge higher and the yield curve will widen. A less risky position will be long the 5yr./short the 10 Yr. We continue to hold short biased positions in Eurodollars.

Grains: May Corn is currently 0’6 lower at 495’6 and Dec. 1’0 higher at 496’6. May Beansc are 9’0 lower at 1470’6 and Nov. 1’4 higher vat 1217’0. May Wheat is currently 2’6 lower at 670’2. If you remain short May Beans either take profits or lower your protective buy stop to the 1486’0 level. If you remain spread long Nov. Beans/short May Beans either take profits or monitor the spread carefully and exit if it trades over 264’0 premium the May (currently 256’0 premium the May). We remain spread long Dec. Corn/short May Corn. Next week we will be rolling any remaining May positions into July.

Cattle: June LC are currently 50 lower at 134.47 and Aug. FC 27 lower at 182.00. We are currently on the sidelines but continue to have a somewhat negative bias to the meats and will be a seller on rallies above 183.25 in Aug. FC. A close below the 134.10 level for June LC could indicate another leg down.

Silver: May Silver is 10 cents higher at 19.46 and June Gold 3.00 higher at 1284.10. We remain long a small Silver position and long out of the money calls in June and Aug. Gold.

S&P's: June S&P’s are 2.00 lower at 1872.00. We have been stopped out of recent short positions. My bias remain somewhat negative. Treat as a trading affair between 1854.00 and 1882.00.

Currencies: As of this writing the June Euro is currently 36 higher at 1.3837, the Swiss 48 higher at 1.1351, the Yen 33 higher at 0.9779 and the Pound 28 lower at 1.6787. We remain short the Euro. I am looking to trade the Pound from the short side on rallies to the 1.6840 area for short term (1-3 days) trades.