Marc Nemenoff
PRICE Futures Group
Financials: June Bonds are currently 5 lower at 133’24 and the 10 Yr. Notes 1 lower at 123’23. We continue to hold the long 10 Yr. Note/short Bond spread, currently trading at 10’01. We remain short Dec. 2014 and Mar. 2015 Euro dollars. Support on the Bonds remains just under the 133’00 level and resistance has been lowered to the 135’06 area from last week’s 135’16-136’00 level. An easing of rhetoric in Eastern Ukraine has taken away a bit of the “flight to safety” in these markets. I expect a light trade this morning as most European markets are closed for the day.
Grains: May Beans are currently 4’0 lower at 490’6 and Dec. 3’6 lower at 493’0. May Beans are 10’0 lower at 1504’0 and Nov. 6’5 lower at 1232’6. We remain spread long new crop/short old crop in both Corn and Beans. If you went short May Beans above the 1520’0 level (see “Report” dated 4/16/2014) either take profits or use a close stop at least 7’0 below your entry level.
Cattle: June LC closed 125 lower at 134.375 on Thursday and May FC 185 lower at 178.05. If you went short May FC near the 180.00 level either take profits or use a close buy stop. The early call is 20-40 higher on FC. A close below the 134.10 level in June Cattle could indicate a further break.
Silver: May Silver is currently 22 cents lower at 19.38 and Gold 8.00 lower at 1286.00. We remain long Silver and long out of the money calls in June and/or Aug. Gold.
S&P's: June S&P’s are currently fractionally higher at 1858.50. Last week we went short in the 1848.00 area with an initial protective buy stop 30.00 points above the market. If the market trades below the 1851.00 level either lower your buy stop to the 1873.00 level or sell an out of the money put against the position with a strike price of 1830 or lower to limit your risk.
Currencies: As of this writing the June Euro is currently 2 lower at 1.3815, the Swiss 3 lower at 1.1337, the Yen 17 lower 0.9752 and the Pound 7 higher at 1.6797. We remain short the Euro. We are also sellers in the Pound above the 1.6840 level for a short term trade. I expect these markets to be relatively tame for a day or so as European markets are closed and volatility for the currency market is on a multi year low. Be on the alert for cheap option prices as low volatility usual provides opportunity.
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
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.