The Nemenoff Report Bonds Higher, S&P's Lower, Silver Lower

Also read: DAILY KITCOMMENTARY FOR: Dec. 23, 2010
Also read: Gold -Daily Technical Forecast
Also read: Silver - Daily Technical Forecast

Financials: Mar. Bonds are currently 5 higher at 142'18 and the 10 Yr. Note 3 higher at 131'13. The failure of Greece to meet another deadline to determine a bailout for debt coming due in March has once again sent the market on a "flight to quality", i.e. Dollar denominated instruments. We remain spread long the 5 yr. Note/ short the 10 Yr. Note which is currently trading at 7'21 premium the 10 Yr. Note.
Grains: Mar. Beans traded 5'2 higher overnight at 1237'6, Mar. Corn 0'2 higher at 644'6 and Mar. Wheat 1'0 lower at 659'6. I still feel Mar. Corn is in resistance at the 650'0 level and will look to reinstate a long position on a break to the 623'0 level. Also, consider going long out of the money calls and/or call spreads in May Corn as a way of "having your foot in the doorway" if price advances continue from present levels.
Cattle: On Friday Apr. LC closed 150 lower at 127.40 and Mar. FC 92 lower at 154.45. I maintain a negative bias to these markets. The early call is lower due to weak packer demand.
Silver: Mar. Silver is currently 28 cents lower at 33.47 and Apr. Gold 21.00 lower at 1719.00. I will be looking to reinstate long biased positions in Gold on a break below the 1690.00 level.
S&P's: Mar. S&P's are currently 4.00 lower at 1335.00. The market has established some resistance in the 1340-1343.0 area (see Friday's Report). Support remains at 1324.50. Treat as a trading market.
Currencies: As of this writing the Mar. Euro is 90 lower at 1.3062, the Swiss 60 lower at 1.0841, the Yen 9 lower at 1.3055 and the Pound 53 lower at 1.5772. Renewed concerns about Greek debt has pushed the Dollar higher this morning. We remain long out of the money puts in the Mar. Euro and Mar. Yen.
Regards, Marc
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