Cattle Rally as Feeders Break. The Nemenoff Report 01/17/19

Financials: Mar. Bonds are currently 10 higher at 145’16, 10 Yr. Notes 3.5 higher at 121’26.5 and 5 Yr. Notes 2 higher at 114’16. With the Government partially shut down now for nearly a month the market is down slightly from last week. Most eyes are focused on Great Britain and Brexit. P.M. Teresa May was voted down nearly 2 to 1 on Brexit proposal but managed to withstand a vote of confidence and able to keep her Government intact. We might be seeing a slight flight to safety to U.S. Treasuries bot nothing dramatic As for the yield curve, a slight bump up with longer dated instruments gaining yield on the shorter terms. We remain long June 2019/short Dec. 2019 Eurodollars from -5 points June under Dec., now trading at -1. Our objective is 5 points premium the June.
Grains: Mar. Corn is currently 1’4 higher at 375’4, Beans 3’4 higher at 898’0 and Wheat0’2 higher at 512’6. I currently have no positions but feel we are still headed lower. That being said I am looking to the long side for opportunity should we have a substantial break, 15 cents in Corn and 30 cents in Wheat.
Cattle: Live and Feeder Cattle went their separate ways as nearby Live Cattle contracts gain about 200 points breaking through the 127.00 are on the upside and Jan. Feeders broke 300+ points. I stubbornly remain short Feb. LC.
Silver: Mar. Silver is currently 8 cents lower overnight at 15.56 down 12 cents for the week. I remain long with a protective sell stop on ½ of my position at 15.38. I have changed my strategy from having my entire position covered by this stop as I feel the Dollar will eventually weaken and this should be bullish to Silver.
S&P’s: Mar. S&P’s are currently 10.25 lower at 2603. I am recommending being long either out of the money Puts and/or Put spreads 50 to 100 handles out of the money.
Currencies: As of this writing the Mar. Euro is currently 14.5 lower at 1.1442o, the Yen 4 higher at 0.92295, the Pound 28 higher at 1.2939 and the Dollar Index 2.8 higher at 95.705. We remain short the Dollar Index and long Yen.