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Financials:  As of this writing (7:00am) Mar. Bonds are 10 higher overnight at 172’26 up0’03 for the week, Mar. 10 Year Notes up 2 at  137’23 down 15 for the week and the 5 Yr. up 2 overnight down 1 for the week. Yields are about unchanged for the week with short dated end of the curve losing a couple of basis points to the long end. 2yr. Is 0.14%, 5 yr. 0.40%, 10 yr.0.93 and the 30 yr. 1.68%. With the rollout of the vaccines for Covid and the prospect of the passage of a stimulus bill expectations for an economic recovery look a little better. I still expect 10 Yr. rates to go above 1.00%. I will continue to trade from the short side on rallies in the longer dated treasuries.

Grains:  Mar. Corn is 2’4 higher at 426’2 up 2’2 for the week, Jan. Beans up 10’0 overnight and up 5’0 for the week and Mar. Wheat up 12’0 at 595’0 up 14’0 for the week. Given the overnight rally the market is expecting a friendly supply/demand and ending stocks reports this morning.

Cattle: Dec. LC closed 47 lower yesterday at 107.37 down 225 for the week. Mar. FC settled 30 higher at 138.80 down 22.5 for the week. A continued slide in boxed beef prices, a narrowing of the choice/select spread and an increase in marketed weights keep my bias negative. Sell sharp rallies. I will be looking at Feb. LC next week.

Silver:  Mar. Silver is 2 cents higher at 24.01 down 35 cents for the week. The EU has kept rates unchanged and will continue it’s 500Billion Euro bond purchasing program through March 2022. However the Dollar reacts expect an opposite reaction in Silver., i.e., if the dollar goes lower silver should rally, if dollar rallies silver should break. Still too volatile for positions. I still to the Dollar as a proxy.

S&P:  Mar. S&Ps are 6.50 lower at 3658.00 down 9.00 for the week. Big tech tumbled the market yesterday after the announcement of a suit against Facebook for monopolistic practices. Up until then the market had traded above 3700.00 to all time highs on news of a viable vaccine for Covid virus renewed expectations of economic recovery. Could be a case of buy the rumor sell the fact.

Currencies: The Mar. Euro is currently 53 higher at 1.2156, the Yen 15 lower at0.9594, the Pound down 127 at 1.3282 and the Dollar Index down 18 at 90.83. I remain negative the Pound and will be a seller in the Dollar Index.

Please reach out to me if you’d like to learn more about my strategy or get my entry levels.

Marc

Questions? Ask Marc Nemenoff today at 312-264-4310
 
 

 
 

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