Financials: Dec. Bonds are currently 16 higher at 140'01 and the 10 Yr. Note 6 higher at 130'05. This mornings weekly employment report showed an increase in jobless claims of 2,000 versus expectations of an increase of 1,000. I still remain on the sidelines contemplating the purchase of out of the money puts in either Oct., Nov. or Dec. expirations.
Grains: Yesterday Beans closed 1 lower, Corn 7 lower and Wheat 8 lower. Over night Beans were 7 lower, Corn 2 lower and Wheat 4 lower. I still like the long side of Dec. Corn below the 735'0 level if the market allows.
Cattle: Yesterday Oct. Live Cattle closed 67 higher at 117.65 and Oct. Feeder cattle 32 higher at 134.80. I will be looking to reinstate a short position in Oct. LC above the 119.00 level if the market allows.
Silver: Dec. Silver is currently 80 cents higher at 42.43. I am currently on the sidelines and will reinstate long positions if the market breaks below the 39.00 level. Dec. Gold is currently 45.00 higher at 1862.00. Gold is presently too volatile for me to recommend a position.
S&P's: Sept. S&P's are currently 9.00 lower at 1190.00. Yesterday the market traded into the 1192.00-1200.00 resistance area where we initiated a short position. We are presently using a protective buy stop in the 1215.00 area. If the market trades below 1185.00 either take the short term profit or lower your buy stop to 1204.00. Near term support is currently 1176.00.
Currencies: As of this writing the Sept. Euro is currently 103 lower at 1.3986, the Swiss 133 lower at 1.1526, the Yen4 higher at 1.2937 and the Pound 53 higher at 1.6029. Comments by Trichet (European Central Bank) suggesting that banks need to and governments need to live up to agreements and that growth is slow has put some pressure on the markets this morning. I still like the short side of the Yen. I also like the short side for the Euro on sharp rallies now that support in the 1.4100 area has been penetrated. I suggest using put options if interested in the short side of the Euro because of the limited risk.
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