Financials: Mar. Bonds are currently 3 lower at 156’00,10 Yr. Notes 2.5 low at 126’15.5 and 5 Yr. Notes fractionally lower at 118’23. We remain spread long 5 Yr. Notes/short 10 Yr. Notes with a 1:1 ratio.
Grains: Mar. Corn is fractionally higher at 372’2, Mar. Beans 3’0 higher at 894’2 and Mar. Wheat 1’4 higher at 480’4. We remain spread long KC Wheat/short Chicago Wheat currently trading at 4’0 premium Chicago. I still anticipate this spread to go premium long the KC Wheat.
Cattle: Live and Feeder Cattle closed sharply higher to limit up with nearby contracts gaining on deferred contracts and Feeders gaining on Live Cattle. If you remain long I recommend taking action this morning by either liquidating on any rallies, spreading off the position to a deferred contract ( preferably June or August) or selling out of the money calls against the position. I am also willing to do a short term trade from the short side of the market by selling the Feb. contract on a rally above the 131.25 level or selling the Feb. 134.00 call above the 3.80 level.
Silver: Mar. Silver is currently 3 cents lower at 14.285 and Feb. Gold 2.50 lower at 1078.00. We continue to hold a small long position.
S&P's: Mar. S&P are currently 4.25 higher at 2019.25. I will still favor the short side of the market on rallies as long as the market stays below the 200 day moving average of 2038.50.
Currencies: As of this writing the Mar. Euro is currently 17 higher at 1.0969, the Yen 45 higher at 0.82835 , the Pound 14 lower at 1.4875 and the Dollar Index 15 lower at 98.220. I still like the long side of the Yen and short side of the Dollar Index. Consider out of the money calls in the Yen, the 85.00 call is currently under 50 points.
Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The valuation of futures and options may fluctuate and as a result, clients may lose more than their original investment. In no event should the content of this website be construed as an express or implied promise, guarantee, or implication by or from The Price Futures Group, Inc. that you will profit or that losses can or will be limited whatsoever. Past performance is not indicative of future results. Information provided on this website is intended solely for informative purpose and is obtained from sources believed to be reliable. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
Recommended Content
Editors’ Picks
AUD/USD remains under pressure above 0.6400
AUD/USD managed to regain some composure and rebounded markedly from Tuesday’s YTD lows in the sub-0.6400 region ahead of the release of the Australian labour market report on Thursday.
EUR/USD faces decent contention around 1.0600
The knee-jerk in the Greenback reignited some buying interest in the risk complex and pushed EUR/USD to three-day highs near 1.0680, rapidly leaving behind the recent yearly low around 1.0600.
Gold eases despite risk-off mood
Gold trades in a relatively tight range near $2,390 in the second half of the day on Wednesday. In the absence of high-tier data releases, investors keep a close eye on headlines surrounding the Iran-Israel conflict.
Ethereum trades around the $3,000 support following a surge in validator queue
Ethereum (ETH) continued a sideways movement on Wednesday as investors seemed to be waiting for an upward or downward price catalyst. Despite the price stagnancy, the ETH validator queue - possibly fueled by the DeFi restaking boom - rose sharply.
Markets stabilize after Powell rules out rate hike, but the signs don’t look good
Markets are volatile right now; however, a relative calm has descended on the market and US. US stocks are down a touch, but the Vix is lower, US Treasury yields are lower, and the dollar is mostly lower vs. its G10 FX counterparts.