Marc Nemenoff
PRICE Futures Group
Japan and ECU continue Quantitative Easing in effort to stimulate inflation. Yen breaks to 7 year low.
Financials: Dec. Bonds are currently 9 lower at 141’13, 10 Yr. Notes 5.5 lower at 126’15 and the 5 Yr. Note 3.7 lower at 119’14.5. Continued worry about deflation has kept these markets in a tight range. Continue to treat Bonds as a trading affair between 140’08 and 142’28. Housing starts and FOMC minutes later today.
Grains: Dec. Corn is currently 2’4 lower at 369’4, Jan. Beans 9’2 lower at 1028’0 and Dec. Wheat 3’6 lower at 545’2. We remain fundamentally and technically negative for both Corn and Soybeans and will be a seller above 382’0 in CZ4 and a seller above 1058’0 in SF5.
Cattle: Cattle and Feeder Cattle continue to hold gains and edge higher into unchartered areas. The next resistance levels for Dec. and Feb. LC will be the 172.00 level seen as a contract high on the now expired Oct. LC contract. I am on the sidelines.
Silver: Dec. Silver is currently 8 cents higher at 16.26 and Dec. Gold 1.00 higher at 1198.00. I remain on the sidelines.
S&P's: Dec. S&P’s are currently 3.00 lower at 2045.50. Yesterday we tried the short side of the market in the 2042.00 area only to be stopped out with a loss. I am on the sidelines today.
Currencies: As of this writing the Dec. Euro is currently 3 higher at 1.2540, the Swiss unchanged at 1.0436, the Yen 56 lower at 0.8500 and the Pound 30 higher at 1.5663. I am willing to try the long side of the Yen at current levels with a 30 point risk for a short term trade. That being said, the overall picture for the Yen remains negative as it seems they are commited to keeping the printing press running in an effort to stimulate a targeted 2.0% inflation rate.
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