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

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By Marc Nemenoff | February 15, 2013 1:33 AM EST

Price Futures Group

Financials: Mar. Bonds are currently 8 higher at 142'28 and the 10 Yr. Note 1 higher at 131'06.This mornings Weekly Jobless Claims showed a decline of 27,000 vs. expectations of a drop of 8,000. My short term target of 142'30 for recent long positions from the 142'19 area was reached early this morning (the market traded as high as 143'04). If you chose to remain long raise your protective sell stop from the 142'03 level to 142'16. Resistance is currently 144'14.

Grains: Mar. corn is currently 1'4 lower at 694'0, Mar. Beans 11'0 lower at 1412'0, Mar. Wheat 2'4 higher at 738'0 and Dec. Wheat 2'0 higher at 771'0. We remain long out of the money call spreads in Dec. Wheat as a long term trade. I will look to be a buyer in Mar. Corn between 680'0-685'0 if the market allows with a 12'0 cent risk.

Cattle: Apr. LC are currently about unchanged at 125.45 and Mar.FC 65 lower at 140.70 as the market continues its recent slide. Short hedgers should consider buying out of the money calls against short futures positions as a protective measure against price increases. Apr. LC are approaching support in the 127.00 area.

Silver: Mar. Silver is currently 9 cents higher at 30.96 and Apr. Gold 1.00 dollar higher at 1646.00. We remain long a small position in Silver. Gold remains in a downtrend as the market is coming close to testing support in the 1629.00 area (this mornings low was 1636.50). Resistance is currently 1672.00.

S&P's: Mar. S&P's are currently 5.00 lower at 1512.50. The markets in Europe are lower based on disappointing GDP figures which pose the possibility of slipping into recession. We remain short futures and short out of the money puts (strike price of 1480).

Currencies: As of this writing the Mar. Euro is currently 123 lower at 1.3327, the Swiss 56 lower at 1.0845, the Yen 30 higher at 1.0731 and the Pound 40 lower at 1.5499. The possibility of European recession has the Euro sharply lower this morning against both the Dollar and the Yen. Technically this market will once again generate a sell signal with a close nelow the 133.70 level and show confirmation of this signal if the market trades below 1.3260. For the moment I am a seller on small rallies in the Euro for short term trading and will keep a small short position if the market closes below 1.3370 with a protective buy stop at 1.3490. Recent volatility dictates greater risk and a reason to trade smaller sized positions.

Regards, Marc
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