Marc Nemenoff
PRICE Futures Group
Financials: June Bonds are currently unchanged at 164’17, 10 Yr. Notes unchanged at 128’26 and 5 Yr. Notes up 1 at 120’01. Islamic nations instability, air strikes in Yemen and Tikrit (Iraq) pushed Bonds higher overnight before retreating to present levels. Yesterday’s 2 and 5 Yr. auctions were not well received causing the rates to edge slightly higher. We remain spread long 5-5 Yr. Notes/ short 3-10 Yr. Notes (still at a profit). To be honest, when I came in this morning I was expecting the market to be against us. I’m now a bit encouraged that treasury prices may be in for a break and will shed 1 or 2 of the 5 Yr. Notes.
Grains: May Corn is currently 0’4 higher at 395’4, May Beans fractionally higher at 979’0 and May Wheat 4’2 higher at 523’2. We continue to hold the combiation of long the Apr. Corn 375/405 strangle and short the May Corn 390 stradle. The Apr. strangle is now just about worthless (expires tomorrow). I will try to cover the May stradle below 22’0 before next weeks Planting Intention Report. I expect the Report to show a slight increase in Beans and decline in Corn.
Cattle: Apr. Feeders closed 142 lower at 216.45 and Apr Live Cattle 10 lower at 161.90. We have currently been recommending being short Apr. or May FC above the 215.00 level and Apr. LC above the 159.00 level. I am still holding these positions at the moment.
Silver: May Silver is currently 20 cents higher at 17.20 and Apr. Gold 13.00 higher at 1210.00. We have taken partial profits on those accounts with multiple positions and will hold onto remaining remaining positions, although I must note the market is well off the overnight highs of 17.52 in Silver and 1219.00 in Gold. If you have positions in Apr. Gold it’s time to roll into June contracts.
S&P's: June S&P’s are currently 14.00 lower at 2040.00. In my last Report (3/19/2015), I recommended going short, I now recommend taking profits and standing aside. For the next couple of days I’m willing to be just an observer of the “Global situation”.
Currencies: As of this writing the June Euro is currently 58 higher at 1.1028, the Swiss 14 higher at 1.0535, the Yen 66 higher at 0.8434 and the Pound 68 higher at 1.4927. Of note: If oil holds onto it’s price gains it may be time to consider the long side of the Pound. We have taken profits from all short Dollar Index positions. I will now look to the short side fo the Euro in the 1.1200 area.
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