Russia supports Ruble, global markets rally

Russia supports Ruble, global markets rally. Swiss %rates go negative. Expanded limits in Cattle.

Financials: Mar. Bonds are currently 27 lower at 143’28, the 10 Yr. Note 16.5 lower at 126’17 and the 5Yr. 8.2 lower at 118’22.7. Yesterday the FOMC indicated the there will be no changes until after April 2015. The initial reaction was a rall, in the June 2016 Eurodollar to 98.79 missing our target of 98.80 (see yesterday’s Report). Our intention was to go short and we missed the opportunity at the moment. I am also once again interested in the long Jue 2015/short June 2017 Eurodollar spread below 165 premium the June 2015 (currently at 178).

Grains: Mar. Corn is currently 4’6 higher at 413’0, Jan. Beans 6’0 higher at 1033’0 and Mar. Wheat 14’6 higher at 663’2. Yesterday Beans hit our down side objective of 1015’0 giving us reason to cover short positions. I am once again looking at the technicals in Wheat and feel we are approaching resistance in the 670-680’0 area and feel it is time to start selling rallies above 668’0 with a 30’0 cent initial risk.

Cattle: Yesterday Live and Feeder Cattle closed sharply lower to limit down and the early calls this morning are pointing lower. Today the limits will be expanded to 450 points. We took the opportunity yesterday to cover all short biased positions in both Live and Feeder Cattle speculative positions and long LC/shortFC spreads. I also feel that hedgers with short positions might consider buying calls 500-1000 points out of the money as protection on their hedges. Is it time to buy? Maybe, but I would use a close stop. Cattle on Feed Report tomorrow, early estimates are:

Silver: Mar. Silver is currently 22 cents higher at at 16.15 and Feb. Gold 12.00 higher at 1206.00. I will lok to be a buyer in Silver in the 15.70 area and a Buyer in Gold below 1180.00 and recommend an initial risk of about $1,000 on each.

S&P's: Mar. S&P’s are currently 24.00 higher at 2032.50. Yesterday was a momentus stay with the proposed renewed relations with Cuba, the FOMC keeping rates low until at least mid-year 2015, and Russia finally stepping in to support the Ruble. This puts the market nearly 70.00 points off the made lows made Tuesday evening. I’m returning to the short side of the market.

Currencies: As of this writing the Mar. Euro is currently 61 lower at 1.2275, the Swiss 81 lower at 1.0200, the Yen 46 lower at 0.8398 and the Pound 57 higher at 1.5598. The Swiss have lowered rates to -0.25% (yes, that’s a negative) and seem intent on doing whatever it will take to keep cthe Swiss at 120 to the Euro. Once again I feel the Euro is finding support in the mid 1.22’s and will try the long side below 1.2260 for a short term trade.