Financials: Sept. Bonds are currently 13 lower at 126'29. The market has fallen below the 127'02 level which has held for the last few sessions, putting the yield on the Bonds back to the 4% level and the 10 Yr. Notes back just above the 3% level. This mornings Weekly Jobless Claims Report showed a decline of 21K versus expectations of a decline of 12K. Continuing claims were down by 224K. We continue to hold the combination of short Sept. Bonds and short the Sept. Bond 124'00 put. Near term support remains at 126'22 and near term resistance has been lowered to the 127'28 level. If near term support is penetrated the next level of support will be the 126'07 level.
Grains: Yesterday Nov. Beans closed 32 cents higher, Dec. Corn 10 higher and Dec. Wheat 23 cents higher. Over night Beans were 1 higher, Corn 1 higher and Wheat fractionally lower. Hot weather, fund buying and last weeks acreage report continue to support the Grains. We remain long out of the money call spreads in Nov. Beans. I still like playing the Beans from the long side on breaks. I expect to see hedging in Dec. Corn as the market approaches the 400'0 level. At the moment 391'0 is a key resistance level in Dec. Corn that the market needs to close above to technically move to higher levels. Support for Nov. Beans is currently the 921'0 area.
Cattle: Yesterday Live Cattle closed 50-100 higher depending on the contract month and Feeder Cattle slightly higher. A firm cash market, stronger equities market and fund buying have given support to the Live Cattle. The current mantra is that if the stock market works higher the consumer will be more apt to buy better grades of meat. I'm taking a wait and see attitude. At the moment I still like the short side of the Oct. Cattle above the 93.00 level. Producers should start looking for hedging opportunities above 115.00 for Sept. and Oct. Feeders if the market allows.
Silver: Sept. Silver is currently 3 cents higher at 18.04. We contniue to hold the Dec. Silver 20/22 call spread. As for futures, I am willing to look at the long side of the market on a break below the 17.20 level.
S&P's: Sept. S&P's are currently 5.00 higher at 1064.25. This mornings favorable Weekly Employment Report has pushed this market to a 5 seesion high. Yesterday the market pushed through near term resistance of 1042.00. Support is currently 1037.00 and resistance 1080.00. I will be looking to the short side of the market once again in the 1080.00 area.
Currencies: As ofd this writing the Sept. Euro is 20 higher at 1.2675, the Swiss 12 higher at .9537, the Yen 116 lower at 1.1332 and the Pound 48 lower at 1.5155. We continue to hold a short bias in the both the Euro and the Yen. If you are short calls or long puts in the Yen I recommend looking for a profit taking opportunity. If you are short Yen futures I would use a protective buy stop at the 1.1510 level and lower it to the 1.1440 level if the futures trade below the 1.1300 level. The Sept. Dollar Index is currently 3 lower at 84.01.