Bonds Lower, S&P's Higher, Silver Higher
San Francisco (Dec 24) Financials: March Bonds are currently 3 points lower at 130’00 and the 10 Yr. Notes 3 lower at 123’21. Eurodollars ar 1.5-3.5 lower with the nearby contracts continuing to lose to the deferred contracts. Consumer spending report this morning was right on the average estimate of up 0.5%. On Friday GDP came in at about up 4.0%, much better than expectations, having more of an effect on equities than Bonds. We remain short Eurodollars and looking to either take some profits or to sell near the money puts against short futures positions resulting in a combination of short futures/short puts.
Silver: March Silver is currently 2 cents higher at 19.47 and Feb. Gold $3.70 lower at 1200.00. We remain long Silver and will be a cautious buyer on breaks in Gold for short term trading. Use protective sell stops against any long gold positions in the 1173.00 area. If the Gold should trade above 1206.00, raise your sell stop to the 1192.00 area.
S&P's: March S&P’s are currently 8.00 higher at 1822.50. Better than expected GDP on Friday and Consumer Spending this morning has rallied indices to new all time highs. I am on the sidelines.
Currencies: As of this writing the March Euro is currently 22 higher at 1.3694, the Swiss 15 higher at 1.1186, the Yen 7 higher at 0.9623 and the Pound 5 higher at 1.6329. We remain spread long 1 mini Yen/ short 1 mini Euro at 40.60 premium the Euro. The spread is currently 15 points against us at 40.75 (I expect the spread to narrow.