The Nemenoff Report Bonds higher, S&P's lower, Silver lower

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By Marc Nemenoff | December 1, 2012 1:52 AM EST

Price Futures Group

Financials: Mar. Bonds are currently 15 higher at 150'11 and the Mar. 10 Yr. Notes 5 higher at 133'22. For the moment I am still looking at the Bonds as a trading affair between 148'26 and 151'00 with a bias to the short side of the market. In the coming weeks market movement will depend on the ability of the Congressional and Executive Branches of the government to reach an agreement on taxes, budget and deficit reduction before the "fiscal cliff" near years' end.

Grains: Mar. Corn is currently 2'2 lower at 756'4, Jan. Beans 10'2 lower at 1430'6 and Mar. Wheat 6'6 lower at 878'6. My recommended sell stop at 1433'0 in Jan. Beans against long positions has been penetrated taking us out of any remaining long positions. If you remain long Mar. Corn either take profits or continue to use a protective sell stop in the 748'4 area. We remain long the Mar. Corn 800'0/850'0 call spread.

Cattle: Feb. Cattle are currently 15 lower at 131.95 and Mar. Feeder Cattle 10 higher at 149.65. Producers of Live Cattle should be looking for hedging opportunites in Feb. Apr. and June. Producers of Feeder Cattle who use short hedges should consider using option strategies only for price insurance at this time as opposed to futures because of the possible upward potential of the Feeder market at this time.

Silver: Mar. Silver is currently 22 cents lower at 34.20 and Feb. Gold 5.00 lower at 1724.00. We remain long Silver as a long term trade. I will be interested in adding to the Silver position on a break below the 32.75 level with a 1.00 dollar risk for additional contracts. If Gold should fall below the 1705.00 level on the Feb. contract I will once again be willing to trade from the long side of the market. Support for Feb. Gold is the 1687.00-1705.00 area. Government decisions before the end of the year concerning taxes should increase volatility.

S&P's: Mar. S&P's are currently 0.75 lower at 1415.00. The market has held Wed, support area of 1385.00 and has risen above the resistance level of 1407.00, where we have been trading from the short side of the market. My bias remain somewhat negative, that being said, discipline dictates taken a loss from short sales in the 1407.00 area and heading for the sidelines at the moment.

Currencies: As of this writing the Dec. Euro is currently 7 higher at 1.2983, the Swiss 7 lower at 1.0772, the Yen 80 lower at 1.2098 and the Pound 40 lower at 1.5998. If you remain short the Yen either take profits or lower your protective buy stop from the 1.2260 area to 1.2185 area. As I have mentioned over the last few weeks my initial target on the downside for the Yen has been the 1.2000 area, the overnight low was 1.2086 giving me reason to lower our protective stop. If the 1.2000 level does not hol my next target will be the 1.1700 area. I will once again be looking to the short side of the Euro above the 1.3150 area if the market allows.

Regards, Marc
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