Financials: Sept. Bonds are currently 11 higher at 123'15. CPI this morning was down 0.2% in line with expectations and the Weekly Jobless Claims rose 12,000 compared with an average pre-report guesstimate of a decline of 6,000. This added a bit of upward pressure to the Bonds, rallying the Sept. contract to a high of 123'22. We continue to hold the combination of short Bonds and short the Sept. Bond 120'00 put. For the near term support is currently 122'16 and resistance 124'06.
Grains: Yesterday Beans were 8 cents higher, Corn 2 higher and Wheat 9 higher. Over night Beans were 3 higher, Corn fractionally higher and Wheat 2 higher. If you remain long July Corn either take profits or raise your protective sell stop to the 349'4 level. If you remain long July Beans either take profits or raise your protective sell stop to the 951'0 level. We have taken profits on the short Sept. Corn 340'0/420'0 strangle. We remain long out of the money call spreads on the Nov. Beans.
Cattle: Yesterday Live cattle closed about 50 higher and Feeder Cattle slightly lower. Aug. Live Cattle closed above the 89.00 level (89.17). If you remain long either take profits or raise your sell stop to the 87.60 level. If the market trades above the 89.25 level raise your sell stop to the 88.20 level. Resistance is currently 89.75. Long term traders may consider the Feb. 2011 100/106 call spread at 110 points if the market allows. At the moment I am bullish next year's Cattle market. Of course this would depend on an improving economy and I feel this is a cost effective way to participate if a bull market should occur.
Silver: july Silver is currently 36 cents higher at 18.81. I am unfortunately on the sidelines having missed the current run up in prices. The market is currently in resistance. Closes above the 19.00 level could indicate higher prices based on momentum.
S&P's: Sept. S&P's are currently 1.00 higher at 1110.50. I was stopped out of a recent short position as the market made a high at 1117.50 (right on my stop!) earlier this morning. I still have a negative orientation to the market atr present level and will look for a less risky posture than futures to be able to sit with a short position. I recommend selling the Sept. S&P's 1140 call (currently at 35.00 points/$1750.00). Please keep in mind that the profit potential is limited to the premium you collect and that there is unlimited risk, albeit less risk than an outright futures contract.
Currencies: As of this writing the Sep. Euro is 81 higher at 1.2403, the Swiss 138 higher at .9013, the Yen 81 higher at 1.1032 and the Pound 26 higher at 1.4821. The market appears to be up do to strong demand for a Spanish Bond offering that has temporarily tempered fears of Spain having to seek assistance from the EU. I remain short the Euro and/or out of the money calls. The Sept. Dollar Index is currently 48 lower at 85.90. Support for the Index is currently 85.50.