S&P’s are currently 6.5 lower

Marc Nemenoff PRICE Futures Group

Financials: Sept. Bonds are currently 13 lower at 154’21, 10 Yr. Notes 4 lower at 126’12.5 and 5 Yr. Notes 2.7 lower at 118’11.7. Yesterday’s release of the FOMC minutes showed there was very little consensus among Fed. Governors as to when there will be another rate hike. That being said, there was some agreement that inflation was stuck below the target of 2.0%. It was noted that reliance on the Philip’s Curve, which usually indicates an increase in jobs should result in an uptick in inflation, is inexplicably not working. As far as I ‘m concerned the answer is not enough growth in wages and shared prosperity. So much for my thoughts. In the last week we were stopped out of short 5 and 10 yr. Note positions with a small loss. I am now on the sidelines. Next week I will be quoting Dec. contracts.

Grains: Dec. Corn is currently 0’4 higher at 367’0, Nov. Beans 8’2 higher at 933’4 and Dec. Wheat 0’6 lower at 446’2. We were caught off guard by the degree of bearishness in last week’s crop production/supply demand report having bought Nov. Beans just below 955’0 only to be stopped out quickly with a 15’0 loss. We also bought Dec. Corn just below my target price of 372’0 and will use a 356’4 stop for protection. I will adjust my stop upwards should the market rally.

Cattle: Despite continued high volatility LC and FC may have put in a short term bottom. I am long Oct. LC from the 109.00 area and/or long the Oct./Feb. LC spread from the 3.60 level premium Feb. Stay tuned.

Silver: Sept. Silver is currently 13 cents higher at 17.07. We took profits from recent long positions and remain on the sidelines. I will be a buyer under the 16.28 level.

S&P's: Sept. S&P’s are currently 6.5 lower at 2461.00. I am still a seller on rallies but will lower buy stops from the 2486.50 level to 2479.50. Support remains at 2446.50.

Currencies: As of this writing the Sept. Euro is currently 77.5 lower at 1.17120, the Yen unchanged at 0.90905, the Pound 14 lower at 1.2884 and the Dollar Index 39.2 higher 93.83. I still like the long side of the Dollar Index on breaks and will raise protective stop from 92.200 to 92.500. Take profits above 94.20.

Author

Marc Nemenoff

PRICE Futures Group

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

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