Marc Nemenoff
PRICE Futures Group
Financials: Mar. Bonds are 3 lower at 157’04, 10 Yr. Notes 3 lower at 127’02 and 5 Yr. Notes 1.5 lower at 119’06.7. The market awaits this weeks FOMC’s decision on interest rates which the “trade” expects to rise. Comments by Mario Draghi of the ECB took Bonds off their lows as it was reiterated that he will do whatever it takes to stimulate European economies and feels they will hit their target of 2% inflation. I still hold the ratio spread of long 3-5 Yr. Notes/short 2-10 Yr. Notes. For those of you with a greater risk tolerance you might consider selling out of the extra 5 5 Yr. note as this market is now in resistance. The spread is currently at a $350-$400 loss.
Grains: Mar. Corn is currently fractionally lower at 375’0, Jan. Beans 2’4 lower at 868’2 and Mar. Wheat 1’6 lower at 489’0. If you remain long Mar. Corn either take profits or raise your protective sell stop to the 369’0 level. The Mar. KC Wheat/Chi. Wheat spread is currently at 6’6 premium the Chi. Contract. My objective remains at 8’0 premium KC.
Cattle: Live and Feeder Cattle remain under pressure but have rallied 3.00 off their lows with the Feb. LC closing out the week at 125.90. We remain long. The long Apr. LC/short Jun. LC spread has met our near term objective of 8.40 premium the Apr. having traded as high as 8.75. Look for profit taking opportunities.
Silver: Mar. Silver is currently 16 cents lower at 13.73 and Feb. Gold 6.00 lower at 1070.00. We hold a small (mini contract) position and will NOT consider adding at this time unless Silver trades above 14.75.
S&P's: Mar. S&P’s are currently 5.50 lower at 1996.25. Thye market on Friday closed below the 200 day moving average and by my standard is now in Bear territory. I am a seller on rallies and will be a buyer of puts in an effort to hold a position. Be aware anything can happen when the FOMC minutes are released later this week. Support is currently 1980.00.
Currencies: As of this writing the Mar. Euro is currently 9 lower at 1/1011, the Yen 5 higher at 0.8306 and the Pound102 lower at 1.15129. If you remain long the Yen either take profits or raise your stop to the 0.8252 level.
EXTRA: Start thinking about the long side of Nat. Gas.
Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The valuation of futures and options may fluctuate and as a result, clients may lose more than their original investment. In no event should the content of this website be construed as an express or implied promise, guarantee, or implication by or from The Price Futures Group, Inc. that you will profit or that losses can or will be limited whatsoever. Past performance is not indicative of future results. Information provided on this website is intended solely for informative purpose and is obtained from sources believed to be reliable. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
Recommended Content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.