Marc Nemenoff
PRICE Futures Group
Financials: Dec. Bonds are currently14 higher at 159’05, 10 Yr. Notes 1 higher at 129’05 and 5 Yr. Notes unchanged at 120’23.7. The market is still fractious in regards to a rate hike with conventional wisdom at the moment being that a rate hike will not occur this year. I am still spread long June 2016/short June 2017 Eurodollars currently trading at 54 points premium the June 2017 contract, putting us at a loss of $200 per spread. For those of you who have taken the somewhat more aggressive tack and sold a portion of the long end of spread (if you have multiple contracts) at 99.42 (June 2016 contracts) I recommend covering them should the market trade below the 99.33 level. I am also watching the long 5 Yr./short 10 Yr. spread currently trading at 8’12 premium the 10 Yr. and will initiate a position should the spread trade above 8’16 level.
Grains: Decd. Corn is currently fractionally lower at 374’6, Nov. Beans fractionally lower at 904’6 and Dec. Wheat 3’0 lower at 505’4. I am currently on the sidelines. I will try the long side of Corn in the 365’0 area and the long side of beans below 890’0 should the market allow.
Cattle: Dec. LC are currently 35 lower at 136.20 and Nov. FC 85 lower at 185.05. If you went short Dec. LC in the 138.80 area, cover the position and stand aside for the moment. We remain short the Dec. LC 135/145 strangle.
Silver: Dec. Silver is currently 7 cents lower at 16.09 and Dec. Gold 5.00 lower at 1182.00. There is some resistance in Silver at 16.20 and Gold at 1190.00. If you are long multiple contracts consider taking partial profits.
S&P's: Dec. S&P’s are 1.00 higher at 2019.50. We were stopped out of recent short positions at a pretty gtood sized loss when the market traded above the 2007.50 level. Treat as a trading market between 2003.00 and 2026.00 for the moment.
Currencies: As of this writing the Dec. Euro is trading at 1.1375 down 19, the Yen 17 lower at 0.84080 and the Pound 28 lower at 1.5459. If you went short the Euro in the 1.1450 area take profits. We remain long the Yen.
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