Fed Leaves Rates Unchanged, Dollar Plunges, Metals and Equities Rally

Financials: June Bonds are currently 14 higher at 163’18, 10 Yr. Notes 1 higher at 128’18 and 5 Yr. Notes 1 lower at 119’26. Yesterday’s FOMC left rates unchanged and commented that it would do so until there is a better employment picture and inflation comes closer to the targeted 2.0%. It also suggested that nothing will happen, ratewise, at the April meeting. There is still the possibility of a rate hike in the 3rd quarter. We remain spread long 5-5 yr. Notes/short 3-10 Yr. Notes which is currently at a profit. I will note that that the difference in yield widened from 51 basis points premium the 10 Yr. to 53 basis points.

Grains: May Corn is currently 2’2 higher at 377’0, May Beans 5’0 higher at 970’0 and May Wheat 2’2 higher at 513’0. Grains rallied across the Board off of recent lows after the FOMC addressed concerns over a strong dollar which saw the dollar consequently drop. If you went long the Beans in the 955’0 area either take the quick profit or use a protective sell stop at 960’0. We continue to hold the combination of long the Apr. Corn 375/405 strangle and the May 390 straddle .

Cattle: Both Live and Feeder Cattle rallied sharply to close at or near the limit depending on the contract month as cash prices firmed. We are currently on the sidelines but will look to the 215.00 level in Apr. and May feeders as a selling opportunity. Resistance in Apr. LC is the 159.00 area.

Silver: May Silver is currently 37 cents higher at 15.90 and Apr. Gold 18.00 higher at 1170.00. We remain long and will take partial profits for those with multiple contracts above the 16.25 level in Silver and above 1193.00 in Gold.

S&P's: June S&P’s are currently 3.00 lower at 2089.50 rallying 35.00 after the FOMC left rates unchanged. We are once again going short on rallies for a position trade.

Currencies: As of this writing the June Euro is currently 56 lower at 1.0697, the Swiss 25 lower at 1.0127, the Yen 4 lower at 0.8293 and the Pound 16 higher at 1.4870. The June Dollar Index is 35 higher at 99.13. Yesterday’s release fo FOMC comments noted concern over the strong Dollar. The result: Late yesterday afternoon the Euro rallied as high as 1.1000 and the Dollar Index plunged to as low as the 95.00 level before recovering to present levels providing profit opportunities for short Dollar Index positions. If you remain short the Dollar Index lower your buy stop to 99.63 and/or take profits below 98.50.