Marc Nemenoff
PRICE Futures Group
Greece gets 4 month loan extension subject to EU acceptance of proposed economic reforms. Cattle on Feed Report neutral. Gold makes new recent low.
Financials: Mar. Bonds are currently 24 higher at 144’25, 10 Yr. Notes 12 higher at 127’24 and 5 Yr. Notes 7 higher at 119’21. On Friday Europe tentatively granted Greece a four month loan extension subject to acceptance of Greek economic reform proposals, which will probably include some severe tax reforms on the wealthy. The immeadiate reaction in U.S. markets was an equity rally and a break to recent lows in interest rate vehicles. I am still looking to treat the 10 Yr. Notes as a trading affair, preferring the long side of the market between 126’18 and 128’18. On Wednesday I will sart looking at June contracts.
Grains: May Corn is currently fractionally lower at 392’2, May Beans 2’4 higher at 1004’6 and May Wheat fractionally lower at 506’2. We are currently on the sidelines looking to go long Beans in the 985’0 area.
Cattle: We are currently on the sidelines in Live and Feeder Cattle. If you took last weeks recommendation to go long June Hogs either take profits or raise your sell stop to the 80.60 level. If the market trades above 82.40 raise your stop to the 81.10 level. If you took the Hog option recommendation to buy the 82.00/86.00 call spread at 110 points, take profits above the 210 level. Fridays Cattle on Feed Report was neutral.
Silver: Mar. Silver is currently 14 cents higher at 16.43 and April Gold 6.00 lower at 1198.50. We remain long a small position in Silver and will add below the 16.05 level.Also, we will be rolling Silver positions into the May contract by the end of the week. I still want to be a buyer in Gold in the 1170-1190.00 area.
S&P's: Mar. S&P’s are currently 4.50 lower at 2102.50. To be honest I still have a sell side mentality.
Currencies: As of this writing the Mar. Euro is currently 71 lower at 1.1328, the Swiss 58 lower at 1.0562, the Yen 13 higher at 0.8414 and the Pound 12 higher at 1.5406. I am looking to sell the Pound above the 1.5600 level. Treat the Euro as a trading affair between 1.1275 and 1.1520.
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