Bonds are currently 10 lower at 153’24

Marc Nemenoff PRICE Futures Group

Financials: Dec. Bonds are currently 10 lower at 153’24, 10 Yr. Notes 5 lower at 124’14 and 5 Yr. Notes 3 lower at 116’11. During the last week the yield curve between the 10 Yr. and 30 Yr. has narrowed to 38 basis points which has been reflected in the futures as the Bonds gained nearly 2’00 points on the 10 Yr. and 5 Yr. Notes. On Friday we have the monthly Unemployment Report which is expected to show a gain of 200,000 non-farm payroll jobs. Next week the FOMC meeting which is expected to produce a 25 basis point bump in rates. I am currently on the sidelines willing to go short should the 10 Yr. trade above 125’04.

Grains: March Corn is currently 0’4 lower at 352’2, Jan. Beans 8’6 lower at 994’0 and Mar. Wheat 0’4 lower at 424’6. I am still patiently awaiting an opportunity to go long Mar. Corn below 346’0.

Cattle: Live and Feeder Cattle continue to slide with the Feeders out pacing the Live Cattle to the downside. That being said I believe we are starting to see some light at the end of the tunnel as the market nears long term support 3-500 points below the market. I will be a buyer in Feb. LC below 117.75.

Silver: Silver continued its’ slide over the past week dropping another 65 cents to the current price of 15.87. I remain long a small position (mini contracts of 1,000 ounces). I have to ask myself if I would be a buyer at this level if I wasn’t already involved, and the answer, for me, is yes. All things considered, Silver is down only 10 cents for the year (give or take a few cents).

S&P's: Dec. S&P’s are currently 1.00 higher at 2630.25. I am on the sidelines. Next week I will be quoting the March contract next week.

Currencies: As of this writing the Mar. Euro is currently 6 lower at 1.18660, the Yen 36 lower at 0.89200, the Pound 5 higher at 1.3429 and the Mar. Dollar Index12 higher at 93.355. We were stopped out of our Dec. position in the 93.45 area. I am now on the sidelines looking to go short the Pound above 1.3620.

Author

Marc Nemenoff

PRICE Futures Group

Mr. Nemenoff is a 37-year veteran of the futures industry.

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