Bonds are currently 1’01 higher

Marc Nemenoff PRICE Futures Group

Financials: June Bonds are currently 1’01 higher at 144’17, 10 Yr. Notes 1.5 higher at 120’10.0 and 5 Yr. Notes4.5 higher at 113’30.0. As expected the Fed raised rates 25 basis points yesterday. Cited as reasons for the hike: Job gains in recent months, low unemployment, economic activity rising at a moderate rate, inflation nearing target of 2.0%. The reaction by the close of was for a strong close well off the lows of the day made shortly after the announcement. I feel the rally was triggered by the realization that there will probably be just three rate hikes this year and tapering GDP growth by 2020. Add to the mix declining equities the stage was set for a rally. Once again I am turning to the technicals and recommend the short side of the market if the Bonds return to the 145’08 level.

Grains: May Corn is currently 2’0 higher at 377’0, Beans 1’6 higher at 1031’4 and May Wheat 5’0 higher at 458’4. If you remain short either May Corn or May Beans take profits.

Cattle: Apr. and June LC are 6.00+ lower since last weeks’ “Report”. My near term downside objectives have been reached and I am taking profits on short biased positions. Position of note: Long June 115/short June 112 put spread initiated at 95 points premium the 115 put. Take profits above 200 points (Wed. close 220 points). Cattle on Feed Report Friday: Early estimates

Silver: May Silver is currently 12 cents higher at 16.54. We remain long.

S&P's: June S&P’s are currently 22.00 lower at 2696.50, sharply lower for the week. I expect equities to remain highly volatile. I recommend out of the money puts and/or put spreads.

Currencies: The June Euro is currently6 lower at 1.2405, the Yen62 higher at 0.95435, the Pound 10 higher at 1.4195 and the Dollar Index 9 lower at 89.28. I still want to trade the Pound from the long side on breaks.

Author

Marc Nemenoff

PRICE Futures Group

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

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