ECB lowers key rate to 0% from 0.5%, Bank deposit rate lowered to -0.4%

Financials: June Bonds are currently 1 lower at 162’11, 10 Yr. Notes 5.5 lower at 128’15 and 5 Yr. Notes 5.2 lower at 119’21.5. June 2017 Eurodollars are 3 lower at 98.87. Yesterday the ECB lowered rates to 0.0 and announced that QE would continue in an effort to stimulate lending in lieu of banks depositing cash with the central bank, of which such deposits would now have a negative rate of -0.4%. Their ultimate goal is for a 2.0% rise in inflation, of which is now quite a bit below the goal. Draghi has said that no effort will be spared and that QE will continue at least through 2017 and possibly through the end of the decade (as surmised by many analysts). The result was a highly volatile session in both equities and treasuries trading sharply higher and lower and closing without much change. I am on the sidelines at present and will be a buyer in 10 Yr. Notes below 128’00.

Grains: May Corn is currently 0’4 higher at 363’2, Beans 4’0 higher at 893’4 and Wheat fractionally lower at 476’2. This weeks Grain Report was relatively neutral. I am on the sidelines.

Cattle: Live and Feeder Cattle closed sharply higher due to better than expected movement in beef and an uptick in the Feeder Index. I still feel that inventories of Beef and Pork are high and will be a drag on the market overall. The question being (at this time to me), is the discount to deferred contracts too much at this time? I still back spread, long Aug and June/shot Apr.

Silver: June Gold is currently 5.00 lower at 1269.00 and Silver 2 cents higher at 15.57. Gold dtill finds resistance in the 1275.00 level. Yesterday the market gave the opportunity to reinstate long Gold positions as the market broke below 1240.00 and rallied back to the 1275.00 level. If you took advantage of this break and once again hold multiple contracts, take some profits. We remain long Silver.

S&P's: March S&P’s are currently 19.00 higher at 2007.75. Yesteray the market held the 1968.00 support level (see Report from 3/8/2016) I am on the sidelines and will try the short side of the market with a 2014.00 protective buy stop Monday we will be quoting June contracts.

Currencies: As of this writing the June Euro is currently 115 lower at 1.1089, the Yen 50 lower at 0.8816, the Pound unchanged at 1.4291 and the Dollar Index 59 higher at 96.71. Yesterday the Euro and Yen settled sharply higher after falling sharply in initial response to ECB actions. If you are either long Yen or short the Dollar Index look for profit taking opportunities. I will be a seller in the Euro above 1.1280.

I am starting to look for profit taking opportunities in Nat. Gas above 1.850.