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

Financials:June Bonds are currently 12 lower at 134’12 and the 10 Yr. Notes4 lower at 124’15. We remain spread long 10 Yr. /short Bonds spread is currently at 9’30 premium the Bonds putting us at a loss of $1400+. We remain short Dec. 2014 and March 2015 Eurodollars. Since my last “Report”, Apr. 9th, these markets have rallied in spite of a spate of good economic domestic reports, being trumped by the markets nervousness over the situation in the Ukraine and a slow down in Chinese growth. Given that we have a three day weekend approaching I am going to hold current positions and refrain from short term trading until next week. Currently support for June Bonds is 132’26 and resistance the 135’16-136’00 level. Housing starts were up 2.8% somewhat below expectations. Later this morning: Industrial Production, Capacity Utilization and a talk by fed Chairwoman Yellen.

Grains: May Corn is currently fractionally lower at 503’4 and Dec. 1’0 lower at 502’2. May Beans are currently 16’2 higher at 1517’4 and Nov. 7’6 higher at 1236’6. We remain spread long old crop/ahort new crop in both Corn and Beans. May Wheat is currently 3’2 higher at 705’0. I am looking to trade May Beans from the short side on rallies above the 1520’0 level with a 12’0 risk for the next day or so.

Cattle: June LC is currently a tick higher at 134.45 and May FC unchanged at 179.77. We have covered all short June LC and short June/long Oct. positions and will stay out of the LC market until next week. AS for FC, I will be a cseller in May Feeders above the 180.35 level.

Silver: May Silver is currently 14 cents higher at 19.64 and June Gold about $4.00 higher at 1304.00. We remain long Silver and long June Gold 1400 calls and Aug. Gold 1500 calls. Needless to say that yesterday’s action put a chink in my confidence. Slow growth in China has left the perception that demand will suffer. This has obviously trumped the idea that Gold is a safe haven for current geopolitical unrest. We will wait and see and keep our exposure small.

S&P's: June S&P’s are currently 8.00 higher at 184800. Prior to this morning we have traded from the short side of the market but have covered on sharp breaks yielding a series of small to medium profits over the last few sessions. Better than expected earnings from several markets sectors (tech, banking, etc.) have rallied these markets off of a series of lower lows and technical key reversals prompted by civil unrest in Ukraine, Syria, Iraq, etc. I still favor the short side and will once again sell at current level for a position trade and use a buy stop initially 30.00 points ($1500.00) above the market.

Currencies: As of this writing the June Euro is currently 22 higher at 1.3830, the Swiss 4 higher at 1.1367, the Yen 46 lower at 0.9778 and the Pound 80 higher at 1.6794. I remain short the Euro. I will be a seller for a short term trade in the Pound above the 1.6840 level.