Financials: As of this writing (6:30am) June Bonds are at 156’26 up 2 points overnight and up 3’15 for the week, 10 Year Notes up 1 overnight at 132’03 and up 31 for the week and 5 Year Notes unchanged at 123’30 up 9 for the week. Yields, which work inversely to the price movement of the underlying instrument are for the most part lower for the week. The 2 year is down 2 basis points at 0.14%, the 5 year down 4 at 0.83%, the 10 year down 13 at 1.16% and the 30 year bond down 14 at 2.35%. Testimony by Fed Chairman Powell and Secretary Yellen indicate no major changes to monetary policy. Proposal of $3 trillion dollar infrastructure bill could have inflationary consequences and limit upside on longer dated treasuries. I am on the sidelines for the moment.
Grains: May Corn is down 2’4 at 550’6 down 4’2 for the week and May Beans down 6’0 at 1426’0 up 19’0 for the week. I still remain a buyer on breaks, particularly Nov. Beans in the 1215’0 area. Coming up: planting intentions, stay tuned.
Cattle: April LC closed yesterday unchanged at 119.12 down 30 points for the week and April FC up 270 at 142.45 down 180 for the week. I am out of all short biased April LC positions (long Aug./sort Apr. LC spreads). I remain bullish June and Aug. LC.
Silver: May Silver is currently 30 cents lower at 24.98 down 1.21 for the week. I am a buyer on breaks below 25.00 based on chart support.
S&P: June S&P’s are currently 15.00 lower at 3865.00 down 72.00 for the week. Support is at 3857.00 and resistance is now at 3928.00. Treat as a trading affair.
Currencies: The Euro is currently. 4 lower at 1.1831 down 61 points for the week, the Yen 32 lower overnight at 0.9175 down 8 for the week, the Pound up 16 at 1.3713 down 130 for the week and the Dollar Index up 8 overnight and 95 points for the week at 92.61. I have been waiting for a rally above 92.50 to once again trade the Dollar Index from the short side, it’s there. I am also a buyer in the Yen and Pound on further breaks.
Please reach out to me if you’d like to learn more about my strategy or get my entry levels.