Marc Nemenoff
PRICE Futures Group
Financials: Mar. Bonds are currently 3 lower at 156’00,10 Yr. Notes 2.5 low at 126’15.5 and 5 Yr. Notes fractionally lower at 118’23. We remain spread long 5 Yr. Notes/short 10 Yr. Notes with a 1:1 ratio.
Grains: Mar. Corn is fractionally higher at 372’2, Mar. Beans 3’0 higher at 894’2 and Mar. Wheat 1’4 higher at 480’4. We remain spread long KC Wheat/short Chicago Wheat currently trading at 4’0 premium Chicago. I still anticipate this spread to go premium long the KC Wheat.
Cattle: Live and Feeder Cattle closed sharply higher to limit up with nearby contracts gaining on deferred contracts and Feeders gaining on Live Cattle. If you remain long I recommend taking action this morning by either liquidating on any rallies, spreading off the position to a deferred contract ( preferably June or August) or selling out of the money calls against the position. I am also willing to do a short term trade from the short side of the market by selling the Feb. contract on a rally above the 131.25 level or selling the Feb. 134.00 call above the 3.80 level.
Silver: Mar. Silver is currently 3 cents lower at 14.285 and Feb. Gold 2.50 lower at 1078.00. We continue to hold a small long position.
S&P's: Mar. S&P are currently 4.25 higher at 2019.25. I will still favor the short side of the market on rallies as long as the market stays below the 200 day moving average of 2038.50.
Currencies: As of this writing the Mar. Euro is currently 17 higher at 1.0969, the Yen 45 higher at 0.82835 , the Pound 14 lower at 1.4875 and the Dollar Index 15 lower at 98.220. I still like the long side of the Yen and short side of the Dollar Index. Consider out of the money calls in the Yen, the 85.00 call is currently under 50 points.
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