Bonds Higher, S&P's Lower, Silver Lower

Financials: June Bonds are currently 5 higher at 133’24 and the 10 Yr. Note 3 lower at 123’22.5. The long 10 Yr./short Bond spread is now trading at 10’01 premium the Bonds putting current losses at $1500. I’m going to stay with the spread for the moment ,but, will have an exit strategy next week if the spread does not bounce back by at least 10-15 points.

Grains: May Corn is currently 1’2 higher at 485’6, May Beans 7’0 higher at 1443’4 and May Wheat 3’4 lower at 692’6. We are currently on the sidelines. The early estimates for Monday’s grain report are as follows:
Acreage: Corn 92.748 million acres, Beans 81.075, Wheat 56.277.
Stocks: Wheat1.042, Corn 7.099, Beans 0.989.

Cattle: June LC are currently slightly lower at 137.55 and May FC 22 higher at 179.35. Yesterday the market saw nearby contracts of LC rally sharply as cash prices were reported trading above 150.00. Cosequently we have been stopped out of any remaining short June LC positions. We remain long the May FC 168.00 put which now have little value. Yesterday we took some profits on the June Hog 120.00 put by either liquidating or rolling the position into the 116.00 put at 115 points or better early in the session.

Silver: May Silver is currently 11 cents lower at 19.67 and June Gold 6.5 dollars lower at 1297.00. We remain long Silver with a minmal position having been stopped out of additional purchases in the 20.50 area when the market traded below 19.87. We remain long Gold with a protective sell stop in the 1292.00 area.

S&P's: June S&P’s are currently 1.00 lower at 1841.50. If you went short yesterday in 1867-1872.00 resistance area (the high was 1868.75) either take profits or lower your buy stop to the 1854.00 level. Support of 1842 has been broken with an overnigh low of 1839.25 putting support in the 1834.00 area. If the market trades below 1835.00 lower your buy stop to the 1846.00 area.

Currencies: As of this writing the June Euro is currently 25 lower at 1.3764, the Swiss 12 lower at 1.1299, the Yen 18 lower at 0.9784 and the Pound 55 higher at 1.6619. If you remain short the Euro from the 1.3825 area, either take profits or lower your buy stop to the 1.3810 area. If the market trades below 1.3732 lower your stop by 20 points. My attention is now turning towards the Pound which I feel is now getting a bit pricey. I will be looking to the short side of the Pound above the 1.6780 level if the market allows.