Bonds Higher, Grains Lower, S&P’s Lower
Marc Nemenoff I PRICE Group - 09 March 2010

Financials: June Bonds are currently 10 higher at 116’23. Yesterday’s near term support of 116’06 has held (the low was 116’07). If you remain short the Bonds or short the combination of Bonds and the 115’00 put either take profits or lower your protective buy stop to the 117’14 level. If you are stopped out of your short position cover the short June 115’00 put.

Grains: Yesterday May beans closed 5 cents higher, Corn fractionally lower and Wheat 1 higher. Over night beans were 6 cents lower, Corn 3 lower and Wheat 4 lower. I am still looking to the long side of the Beans under the 935’0 level and the long side of May Corn under the 368’0 level. The May Beans 880’0/1000’0 strangle closed at 20’4. IF you remain short this strangle I recommend covering the position at 19’0 if the market allows.

Cattle: Yesterday Apr. Cattle closed 125 higher at 94.20 and June 70 higher at 92.27. Open interest declined 11,200+ contracts in Apr. and gained 5800 in June and 3400+ in Aug. Overall open interest gained 61 contracts. The reason I have been quoting these open interest figures is that the Cattle is at record levels of open interest and I am trying to gauge when the market is over bought after the recent run up in price. As the market approaches the mid 90’s I suggest that hedgers start looking at out of the money puts for price insurance.

Silver: May Silver is currently 31 cents lower at 16.95. I continue to recommend that those of you who are holding long futures positions to take partial profits. We remain long out of the money call spreads on the July contract.

S&P’s: June S&P’s are currently 3.50 lower at 1129.00. I feel that the market has come close enough to the mid January highs with out penetrating them (1143.00 area on the June contract) to warrant a look at the short side of the market once again. If you chose to go short I recommend using a protective buy stop at 1150.00 for protection. We remain long out of the money puts.

Currencies: As of this writing the June Euro is trading 88 lower at 1.3544, the Swiss 54 lower at .9270, the Yen 58 higher at 1.1135 and the Pound 110 lower at 1.4955. Yesterday we rolled the long June Yen 1.0700 puts into the 1.0600 put at 25 points premium the 1.0700. This should leave you either long the 1.0600 put or long the 1.0600/1.0200 put spread. The June Dollar Index is currently 31 higher at 81.05. Resistance on the dollar is currently 81.66.

Regards,
Marc

Marc Nemenoff
312.264.4310
mnemenoff@pricegroup.com
www.pricegroup.com

Bio
Marc Nemenoff is a 37-year veteran of the futures industry. While attending graduate school at the Illinois Institute of Technology, Marc took a job as a clerk on the trading floor of the Chicago Mercantile Exchange for Tabor Grain Co. He quickly found that his background in both math and problem solving techniques were adaptable to the futures markets as well as the career he had been pursuing in Architecture and Urban Planning. Having decided on a career change he quickly rose within the Tabor Grain Co. organization and became their analyst and operations manager for all products traded on the Chicago Mercantile Exchange.

In 1976 Mr. Nemenoff's responsibilities increased when he was granted full membership on the Chicago Mercantile Exchange as Tabor Grain Co's. representative to the exchange. He was their head analyst and liaison to all branch offices. In addition, he was in charge of designing hedging strategies in both the livestock and financial sectors of the market, and writing the firms daily and weekly market letters.

In 1980 Mr. Nemenoff purchased his own membership on the C.M.E. and spent the next 12 years as an independent trader, trading in all markets with a concentration in live cattle as a spreader and market maker. As a member of the exchange he served on many committees including, Live Cattle, Nominating, Contributions, Public Relations and Advertising, and Orientation and Education. During this time he gave speeches to various groups at the behest of the exchange. These included, Agricultural Bankers, The National Cattleman's Assoc., various groups on the Role of the Market Maker, and various groups on the Role of Futures as a Risk Management Tool.

In 1991 Marc left the floor and spent his time as an independent trader and lecturer giving speeches at seminars on various topics. These included Livestock Trading, Interest Rate Futures, Spreads, Technical Analysis, and trading in the pit vs. being an outside speculator. He also taught classes as a guest lecturer at the Chicago Mercantile Exchange on Spreading, Technical Analysis, and Commodity Options.

Since 2004 Marc has been an Associated Person handling customer accounts for both speculators and hedgers. Marc has also been author of the Nemenoff Report, a daily overview of the markets adding his own perspective on market direction.

Since 2002 Marc has been a Board member of Art Encounter, an Evanston, IL.. non- profit organization, specializing in the visual arts and providing community outreach programs, such as art classes for people of all ages with special needs. Marc has been President of Art Encounter since 2009.

Mr. Nemenoff describes his approach to the market as 75% technical and 25% fundamental. He is also a firm believer in the use of option strategies as a way of using leverage and minimizing risk when one has a long-term market strategy.

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