Bonds Lower, Yen Lower, S&Ps Steady
Marc Nemenoff I PRICE Group - 10 March 2010
Financials: June Bonds are currently 10 lower at 11606. The market is currently in near term support. If the market breaks through the 11606 area the next level of support will be the 11518 level. If you remain short the Bonds or continue to hold the combination of short Bonds and short the June Bond 11500 put either take profits or lower your protective buy stop to the 11628 level. For those of you who have on the combination of short Bonds and short the 11500 put, if you are stopped out of the Bonds, cover the short put.
Grains: Yesterday May Beans closed fractionally lower, Corn 6 lower and Wheat 5 lower. Over night Beans were 54 higher at 9530, Corn 16 lower at 3672 and Wheat 10 lower at 4884. This mornings ending stocks report looks negative for Corn and slightly friendly for Beans. If you went long Corn in the 3680 area yesterday I recommend using a 100 protective sell stop against this position. If you went long May Beans in the 9350 area, either take profits on a higher market this morning or use a protective sell stop at 9404. The May Beans 8800/10000 strangle closed around 194. If you remain short this trade, take profits at 190 today if the market allows.
Cattle: Yesterday Apr. Cattle closed 20 higher at 94.40 and June 5 higher at 92.32. Overall open interest dropped by 1775 contracts. About 8500 contracts were rolled from the Apr. contract to
deferred contracts. I continue to recommend hedgers be looking to buy out of the money puts as price insurance.
Silver: May Silver is currently 1 cent lower at 17.32. I continue to recommend taking partial profits from long futures positions. We remain long out of the money call spreads on the July contract.
S&Ps: June S&Ps are currently 50 lower at 1135.25. Yesterday we went short this market. I am currently recommending protecting this position with a buy stop at 1150.00. If the market trades below the 1126.00 level, lower your buy stop to the 1144.00 level. We remain long out of the money puts as portfolio insurance.
Currencies: As of this writing the Jun. Euro is trading 21 higher at 1.3612, the Swiss 20 higher at .9321, the Yen 67 lower at 1.1056 and the Pound 34 lower at 1.4944. We remain long the Jun.
Yen 1.0600 put and/or the long 1.06/short the 1.02 put spread. I am still looking to be a seller in the Jun. Euro above the 1.3800 level if the market allows. The Jun. Dollar Index is currently 1 higher at 80.89.
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.
Disclaimer
The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. The Price Futures Group, Inc., its officers, directors, employees, and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction. There is a substantial risk of loss in trading futures and options |
