Financials: June Bonds are currently 26 lower at 130’30 and the 10 Yr. Notes 17 lower at 123’15.0. Eurodollars are 2-5 lower depending on the contract month. This mornings Jobs Report showed an increase in non-farm payrolls of 175,000 vs. expectations of 135-150,000. The unemployment rate came in at 6.7% vs. expectations of 6.5%. I feel that Bonds are in support and recommend cover all short biased 30 yr. and 10 yr. positions. If you continue to hold the long 10 Yr. Note/ short Bond position take the money (spread currently at 7’15 premium the Bonds). We contniue to hold short Eurodollar futures and/or long near the money puts).
Grains: May Corn is currently 9’0 higher at 497’4, May Beans 18’6 higher at 1456’6 and May Wheat 14’4 higher at 660’6. These markets continue to move upward spurred by a weak dollar, Ukrainian situation and the fear of tight near term supply. We have liquidated all long biased positions and await Monday morning’s Crop Production Report to give us a hint of future direction. For the moment I will be a buyer on a sharp set back.
Cattle: Apr. LC are currently about 20 lower at 143.10 and May FC 55 lower at 172.90. These markets have had a substantial break from the weekly highs and still appear to me to be overbought. Higher feed grain prices weigh on the market particularly Feeder Cattle for the moment. That being said I remain a cautious seller on rallies for short term (1-3 days) trades. We remain long May FC 168.00 puts and will take profits if they trade above the 270 level (currently at 125).
Silver: May Silver is currently 60 cents lower at 20.98 and Gold 15.00 dollars lower at 1337.00. This morning’s friendly Jobs Report have edged interest rates higher making precious metals a bit less desireable for the moment. That being said I remain long Silver for the long term. I will be looking at the long side of Gold below 1300.00.
S&P's: Mar. S&P’s are currently 9.00 higher at 1885.25. The market is up on the Unemployment Report. I am on the sidelines looking to buy out of the money puts.
Currencies: This morning we will be quoting June contracts and recommend rolling any Mar. positions into June contracts over the next few days. The June Euro is currently 8 lower at 1.3853, the Swiss 10 lower at 1.1356, the Yen 57 lower at 0.9648 and the Pound 2 higher at 1.6730. We remain short the Euro with a protective buy stop at 1.3920 (the overnight high is 1.3915).
