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

Financials: June Bonds are currently 2 higher at 132’01 and the 10 Yr. Note 1 lower at 122’29. We continue to hold the long 10 Yr. Note/short Bond spread, currently trading at 9’02 premium the Bonds. We put this spread on at 8’16 premium the Bonds. We continue to hold short biased positions in Eurodollars. Weekly Jobless Claims were up by 22,000 slighly more than the expected 16,000. Guesstimates for tomorrows Monthly Employment Report is for an increase in non-farm payrolls of 203,000.

Grains: May Corn is currently 3’4 higher at 499’2, May Beans 13’2 higher at 1475’4 and May Wheat2’0 higher at 671’0. If you went short early in the session yesterday in either Corn or Beans look for profit taking opportunities. We also went back spread early in the session, Long Dec./short May Corn and long Nov./short May Beans.

Cattle: June LC are currently 22 higher at 137.00 and May FC 20 higher at 178.17. I still like the short side of June LC above the 137.00 level. We remain long the May FC 168.00 put. If you remain long the June Hog 116.00 put look to take profits in the 240 area. Hogs as of this writing are sharply lower.

Silver: May Silver is currently 30 centss lower at 19.75 and June Gold ^.00 dollars lower at 1284.00. We remain long Silver.

S&P's: June S&P’s are currently fractionally higher at 1883.50. We remain short futures. Before the end of the day I will either use a protective buy stop in the 1887.00 area or sell the May 1840.00 put against short futures positions.

Currencies: As of this writing the June Euro is 2 lower at 1.3759, the Swiss 1 higher at 1.1285, the Yen 16 lower at 0.9624 and the Pound 33 lower at 1.6584. Mario Draghi commented on the possibility of continued quantitative easing on the Euro this morning in response to uncertain inflation data. Fear of deflation. I am once again going to recommend short biased positions in the Euro (short futures, short calls, long puts).