Financials: Sept. Bonds are currently 5 higher at 128'18. Near term support remains at 127'18 and near term resistance at 128'28. Long term resistance remains at 132'00. The yield on the 30 Yr. Bond remains around 4% and the yield on the 10 Yr. is currently 2.90%. Yields on the 2 Yr. and 5 Yr. are on all time lows (at least during my 37 yr. career). The long 10 Yr. Note/ short Bond spread is currently at 4'19 premium the Bonds. I will be interested in doing this spread at 4'28 premium the Bonds or higher. At the moment I am still on the sidelines as far as an outright futures position is concerned,
Grains: Yesterday Nov. Beans closed 8 cents higher, Dec. Corn fractionally lower and Dec. Wheat 13 lower. Over night Beans were 10 cents higher, Corn 5 higher and Wheat 25 cents higher. The continued weakness of the Dollar is just one of a few fundamentals that is driving this market higher, along with international weather conditions and continued buying by Commodity funds. Earlier in the week we took profits (our scale up sell stops were executed) in Bean and Corn futures. We remain long out of the money call spreads in Dec. Corn.
Cattle: Yesterday Live Cattle closed 20-30 lower and Feeder Cattle 15-40 higher. Over night Live Cattle is 30-50 higher and Feeder Cattle about 20 higher. If you remain short Oct. Cattle continue to use a protective buy stop just above the 95.20 level.
Silver: Sept. Silver is currently 23 cents higher at 18.65. The market over the last few days has traded above the 18.50 resistance level, only to close below it. I still need to see a close above the 18.50 level to be convinced this market is headed high. Will today be the day? We remain long the Dec. 20/22 call spread.
S&P's: Sept. S&P's are currently 2.00 higher at 1120.25. Resistance remains at 1129.50. We remain short the Sept. 1140 call from the 21.00 level.
Currencies: As of this writing the Sept. Euro is 14 lower at 1.3217, the Swiss 28 lower at .9601, the yen 14 higher at 1.1661 and the Pound unchanged at 1.5941. I remain on the sidelines.