Bonds Rally To Recent Highs. The Nemenoff Report 05/16/19

Financials: June Bonds are currently 1 lower at 149’27, 10 Yr. Notes 2.5 lower at 124’19.0 and 5 Yr. Notes 2.25 lower at 116’03.50During the last week we have seen an escalation in the tariff battle with China which put the market in a “risk off” scenario as market participants back off of equities and sought the safe haven of U.S. treasuries. WE are currently short the 5 Yr. Note and spread long Dec. 19/short Dec. 20 Eurodollars, both positions are currently at a small loss. My objective of Bond prices above 149’15 has been reached and I am a seller on rallies.
Grains: July Corn is currently up 5’6 at 375’2, Beans 5’4 higher at 841’0 and July Wheat 10’4 higher at 459’2. Late planting due to unseasonably wet weather is perceived to have a negative effect on yields causing a substantial rally off of last weeks lows. Last week I recommended the long side of July Corn below 355’0. Take profits on today’s higher market!
Cattle: Live and Feeder Cattle continued their slide making new lows. The good news is that we are seeing some mid session bounces indicating to me that there is some interest. We are currently long biased and have sold short the Aug. LOC 102.00 put for 175 points.
Silver: July Silver is currently 2 cents lower at 14.79. I remain long.
S&P’s: June S&P’s are currently 7.00 higher at 2862.00. We have been buyers below the 2847.50 level and suffered through some wild swings as evidenced by the recent 2799.00 low. Treat as a trading affair between 2820 and 2885.00.
Currencies: As of this writing the June Euro is currently 2.5 lower at 1.12320, the Yen up 6 at 0.9162, the Pound 35 lower at 1.2829 and the Dollar Index .064 higher at 97.440. The Pound worked lower for the week as G.B. still has not come to terms with Brexit. We remain short the Dollar Index with a protective buy stop at 98.200.

Regards,
Marc