The Nemenoff Report

1/16/2020

Financials: Mar. Bonds are currently 0’6 higher at 158’22, 10 Yr. Notes 0’2 higher at 129’13.5 and 5 Yr. Notes 0’01.5 at 119’00.5. This put the Bonds up about 2’00 for the week drifting up towards early last week’s high of 159’17 after the Irani bombing in Iraq. The market is now in the 158’28 resistance area. Near term support remains the 115’15 area. I continue to hold a negative bias.

Grains: Mar. Corn is currently 5’0 lower at 382’4, Beans 3’0 lower at 925’6 and Wheat9’0 lower at 564’2. Last weeks Crop Report was slightly bearish showing a small increase in yield per acre and ending stocks above trade guesstimates. The hope of increased trade by the signing of phase one of a trade agreement with China was in my opinion a “triumph of style over substance”, hence lower markets. All that being said, I want to be a buyer on a sharp break.

Cattle: Live and Feeder Cattle trended slightly lower for the week. I still like the idea of the short side of these markets for Apr. LC. Support for Apr. LC remains at 124.50 and resistance in the 129.00 area.

Silver: Mar. Silver is currently 4 cents higher at 18.03, slightly above last weeks 18.00. I remain long.

S&P’s: Mar. S&P’s are currently 10.00 higher at 3304.00, new highs. Trend remains up, but could this be a bubble? It’s earnings’ season. Use stops to protect all positions.

Currencies: As of this writing the Mar. Euro is 13.5 higher 1.12060 (up about 50 points for the week), the Yen 3 lower at 0.91235  (50 lower week to week), the Pound 36 higher at 1.3086 (up 20 week t week) and the Dollar Index 12 lower at 96.84 (down 30 for the week). I still like the long side of the Euro and Pound and the short side of the D.I.

Regards,
Marc

888.908.4310 | 312.264.4310
mnemenoff@pricegroup.com

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