Dec. Bonds are currently 8 lower at 119'27, the 10 Yr. Notes 5 lower at 117'08, the 5 Yr. Notes 3 lower at 115'14 and the 2 Yr. Notes 1 lower at 108'10. We continue to hold the combination of short Dec. Bonds and short the Dec. Bond 116'00 put. Next week I will be watching the long 10 Yr. Notes/short Bond spread (the NOB) for a trading opportunity.
Yesterday the Beans were 2'4 higher, Corn 7 lower and Wheat 5 lower. Once again an active trade in the over night session with the market trading both sides of settlement only to close a bit lower across the board. Beans were 4 lower, Corn 3 lower and Wheat about unchanged. We remain long out of the money calls and/or call spreads in the Dec. Corn. We also remain long Dec. Wheat with a near term objective in the 490'0 area. If the market trades above 487'0 either take profits or enter a protective sell stop 10 cents above your entry level.
Yesterday Oct. Cattle closed 120 lower at 85.77. The market has traded through my recommended sell stop of 86.35 for any remaining long positions. I will be looking to reinstate a long position in either the Oct. or Dec. contracts below the 84.00 level if the market allows.
Dec. Silver is currently 8 cents lower 17.18. If you remain long with multiple contracts I recommend reducing your position by 20-25%. I caution against entering the market from the log side at current levels after the recent run up in prices. If you are long call options I recommend rolling up to a higher strike price.
Dec. S&P's are currently 3.00 higher at 1065.75. We are on the sidelines in futures and long out of the money puts/
As of this writing the Dec. Euro is 20 lower at 1.4727, the Swiss 9 lower at .9724, the Yen 20 lower at 1.0956 and the Pound 102 lower at 1.6347. We remain long out of the money puts in the Yen and out of the money puts and/or put spreads in the Dec. Pound. The Dec. Dollar Index is currently 12 higher at 76.55. Resistance on the Dollar Index is currently 78.00.