Leftist Party wins Greek election

Leftist Party wins Greek election. Euro makes new low before rallying to higher for the day. Equities recover from overnight lows.

Financials: Mar. Bonds are currently 2 higher at 149’29, 10 Yr. Notes 4 lower at 129’18.5 and 5 Yr. Notes 4 lower at 120’16. Bonds made an overnight high of 150’15 in a knee jerk rally prompted by the results of the Greece elections setting the bar for near term resistance. Support is currently 148’12. I’m inclined to trade this market from the short side on rallies using a protective buy stop just above the recent high of 151’10. We still remain short the June 2017 Eurodollar and will try to spread up this position by buying the Sept. 2015 Eurodollar at 99.44 (currently at 99.465).

Grains: Mar. Corn is currently 2’4 lower at 384’2, Mar. beans 4’4 lower at 968’2 and Mar. Wheat 1’0 higher at 531’0. Mar. beans are approaching our downside target of 965’0 and we will be biased to the long side of the market below this level. I am on the sidelines in Corn and Wheat.

Cattle: On Friday Live and Feeder Cattle closed sharply lower to limit down. The results of the Cattle on Feed Report were:

Silver: Mar. Silver is currently 16 cents lower at 18.15 and Feb. Gold 7.00 lower at 1285.50. I still want to teat Silver as a trading affair between 17.70 and 18.40. I will note that my bias has shifted from selling resistance to being a buyer on a break to support. Treat Gold as a trading affair between 1270.00 and 1300.00 favoring the long side on breaks.

S&P's: Mar. S&P’s are currently 2.50 higher recovering from an overnight low of 2025.50. Treat as a trading market between 2029.00 and 2053.00.

Currencies: As of this writing the Mar. Euro is currently 24 higher at 1.1275, the Swiss 188 lower at 1.1251, the Yen 48 lower at 0.8449 and the Pound 3 higher at 1.5014. The Euro made a new 11 year low overnight at 1.1102 as the results of the Greek elections started pouring in. The anti austerity leftist party Syriza gained to nearly 50% of government seats causing concern that Greece will not live up to their ECU financial obligations and may default in late Feb. early April, or at the very least will seek a restructuring of loan agreements. Is this the opportunity to sell the rumor, buy the fact? No doubt I have been on the wrong side of the market, trading from the long side for short term trades, but I must say we really have not lost any money but have missed the boat by not having a short position. Treat as a trading affair between 1.1110 and 1.1420. I still feel that the Yen and Pound are exhibiting bottoming action. I will remain on the sidelines in the Swiss.