The Nemenoff Report - Bonds Higher, S&P's Higher, Silver Higher


Financials: Mar. Bonds are currently 13 higher at 140'23 and the 10 Yr. Note unchanged at 129'04. This mornings monthly Unemployment Report showed an increase in non-farm payrolls of 120,000 (+140k private sector jobs, -40k government jobs) vs. expectations of an increase of 140,000. The unemployment rate for Nov. dropped to 8.6% vs. expectations of 9.0%. The October rate was left at an unrevised 9.0%. We remain long out of the money puts and or put spreads.

Grains: Yesterday Jan. Beans closed 3 cents lower, Mar. Corn 6 lower and Mar. Wheat fractionally higher. Over night Beans were 5 higher, Corn 1 higher and Wheat unchanged. We remain long Mar. Corn with a protective sell stop at 586'0. If the Mar. corn should trade above 616'0, raise your sell stop to the 591'0 level.

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Cattle: Yesterday Feb. LC closed 12 higher and Jan. FC 7 higher. We continue to hold the combination of short Feb. LC and short the Feb. LC 118 put. Short hedgers in Feeder Cattle should take note of recent price advances on all contracts through Sept. 2012 for hedging opportunities.

Silver: Mar. Silver is currently 47 cents higher at 33.23. If you remain long term bullish consider out of the money calls and/or call spreads.

S&P's: Dec. S&P's are currently 13.00 higher at 1257.00. Some positive news out of Europe concerning inter bank co-operation on lending among each other helped boost the market above the 1260.00 level overnight. The unemployment numbers (see Financial comments) have for the moment allowed the market to hold onto it's recent gains. I am currently on the sidelines looking at the market as a trading affair between 1240.00 and 1260.00. If the market should advance above the 1270.00 level I will once again be looking to establish short positions

Currencies: As of this writing the Dec. Euro is currently 46 higher at 1.3503, the Swiss 21 higher at 1.0933, the Yen 14 lower at 1.2841 and the Pound 13 higher at 1.5696. We remain long out of the money puts and/or put spreads in the Euro and the Yen for either Jan. or Mar. expiration.

Regards, Marc 888.908.4310 | 312.264.4310