The Nemenoff Report
Financials: Mar. Bonds are currently 19 higher at 163’18, 10 Yr. Notes0’06.5 higher at 131’09.0 and 5 Yr. Notes0’03.5 higher at 118’30.75. The yield curve continues to flatten with the 5 Yr. now 4 basis points under the 2 yr. If Bonds should rally above 165’00 it will put the yield on the 30 Yr. Bond below 2.0%. I remain friendly but cautious. Resistance remains at 165’10, support has risen to 160’04.
Grains: Mar. Corn is1’2 lower at 379’2, Beans 5’0 lower at 892’2 and Wheat 4’2 lower at 561’0. These markets are still in a down trend. Export demand is poor especially due in part of the Coronavirus. All that being said, I still want to be a buyer in Corn on a sharp break.
Cattle: Live and Feeder Cattle may have put in seasonal lows over the last week as we saw the Apr. LC hold the 117.00 level and Mar. FC hold the 136.00 level. As stated last week, I am a buyer on breaks.
Silver: Mar. Silver is currently 5 cents higher at 18.36 and up 76 cents for the week. Stay long. Roll positions into the May contracts.
S&P’s: S&P’s are 7.00 lower at 3380.25 after making an overnight all time high of 3397.50. A lack of fundamental negative news other than the “virus” is keeping this bull run going. Looking at Western European numbers (interest rates, consumer confidence, employment etc.) makes me slightly negative. Think put options.
Currencies: As of this writing the Mar. Euro is 5 lower at 1.o88805, the Yen 31.5 lower at 0.89435, the Pound 40 lower at 1.2888 and the Dollar Index. At this time my negative stance on the Dollar is obviously wrong. I am going to put close protective stops against long Euro, long Pound and short Dollar Index positions.
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