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

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By Marc Nemenoff | February 14, 2013 1:43 AM EST

Price Futures Group

Financials: Mar. Bonds are currently 17 lower at 142'23 and the 10 Yr. Note 7.5 lower at 131'06.5. If you went long in the 142'19 area I recommend using a protective sell stop in the 142'03 area. If the market trades above the 143'30 level either take the short term profit or raise your sell stop to your break even level. Resistance has been lowered to the 144'14 level for the short term.

Grains: Mar. Corn is currently 5'2 lower at 691'0, Mar. Beans 7'6 lower at 1413'0, Mar. Wheat 5'0 lower at 727'0 and Dec. Wheat 6'0 lower at 759'0. We remain long out of the money call spreads in Dec. Wheat. Once again we are approaching long term support in the 680'0-685'0 area in Mar. Corn where I will be willing to try the long side of the market with a 12'0 risk. I also feel it is time to start paying attention to Dec. Corn which is approaching long term support in the 530'0 area.

Cattle: Apr. LC are currently 37 lower at 129.57 and Mar. FC 85 lower at 142.40 as these markets continue their recent price slide amid sluggish demand and weight heavy marketings. Hedgers who continue to hold the combination of short futures and long out of the money call spreads should be looking to cover the short leg of their call spreads leaving you short futures and long out of the money calls. The long call is meant to protect short hedges against any dramatic price increase and to have the ability to participate in any "chance" dramatic price increase.

Silver: Mar. Silver is currently 3 cents lower at 30.99 and Apr. Gold 2.00 dollars lower at 1648.00. We continue to hold a small long position in Silver as part of an overall portfolio strategy. Gold remains in a downtrend with support in the 1629.00 area and resistance now at 1672.00 having been lowered from 1688.00.

S&P's: Mar. S&P's are currently 2.25 higher at 1518.50 with the market making a new recent high earlier this morning at 1520.00. We remain short futures and short out of the money puts as a partial hedge. Support is currently 1508.00 and resistance 1522.00 for the short term.

Currencies: As of this writing the Mar. Euro is currently 32 higher at 1.3478, the Swiss 5 higher at 1.0905, the Yen 5 lower at 1.0690 and the Pound 50 lower at 1.5600. These markets have been reacting both up and down with statements released as G-7 responds to recent slides in the Yen as the Bank of Japan tries to fight deflation by intervening against the Yen against the Dollar and the Euro. I'm sure when G-20 meets short ly we will see and hear more of the same. We were stopped out of any remaining short Euro positions (see Report from 2/11/2013) when the market traded above the 1.3470 level.

Regards, Marc
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