Financials: Jun. Bonds are currently 6 higher at 120'23. The market continues to rally on a flight to quality because of the potential for unrest in Greece, Italy, Spain and Portugal. I remain on the sidelines. Early estimates for tomorrow's Unemployment Report are for an increase in non-farm payrolls of 185,000.
Grains: Yesterday Beans were 9 cents lower, Corn 4 higher and Wheat 1 higher. Over night Beans were 1 higher, Corn 2 lower and Wheat 1 lower. I must say that I am a bit impressed by yesterday's performance in Corn, but not enough to recommend an outright long position at this time. I am still influenced by the strength of the Dollar and feel that the upside in Corn is limited at this time. I continue to hold out of the money call spreads in Nov. Beans and also remain short the Sept. Corn 340'0/420'0 strangle.
Cattle: Yesterday Live Cattle closed 67 higher to 20 lower with the nearby Jun. contracted gaining on deferred contracts as the cash market holds in the 98.00-100.00 range. Feeder Cattle closed slightly higher. Over night the market was slightly lower. At this juncture I am slightly short the Jun. and Aug. contracts and will use a protective buy stop 100 points above the market. Producers should consider selling out of the money calls in the Jun. or Aug. contracts against existing price protective put positions.
Silver: July Silver is currently 1 cent lower at at 17.52. At this time I am holding a small long position. Something to consider in the coming weeks: The ratio between Silver and Gold is historically wide at about 67:1. You might want to put on a spread of long 2 mini silver and short 1 mini gold. This will represent approximately $35,000 worth of Silver and $39,400 worth of Gold.
S&P's: Jun. S&P's are currently 5.00 lower at 1159.00. If you remain short I recommend covering your position or lowering your buy stop to the 1170.00 level ahead of tomorrow's employment report.
Currencies: As of this writing the Jun. Euro is 96 lower at 1.2730, the Swiss 80 higher at .9040, the Yen 5 higher at 1.0685 and the Pound 30 lower at 1.5071. I recommend taking profits on put spreads initiated earlier in the week on the Euro and standing aside until Monday. The Dollar Index is once again on new highs at 84.63, up 44 points.