Financials: Sept. Bonds are currently 9 lower at 126'16. We continue to hold the combination of short Bonds and short the Sept. Bond 124'00 put. Yesterday's near term support of 126'22 was violated early in the session putting support at 126'07. If this level is violated the next level of support will be the 125'16 area. Near term resistance is currently the 127'16 area.
Grains: Yesterday Nov. Beans were 13 cents higher, Dec. Corn 7 higher and Dec. Wheat 17 higher. Over night Beans were fractionally lower, Corn fractionally higher and Wheat 5 lower. This morning's USDA ending stocks report is being deemed slightly negative as it is apparent the stocks are not as tight as previously thought. Although there was a drop in ending stocks (not as large as predicted) it is thought that it is currently priced into the market. The figure for Corn was 1.373 billion bushels versus a pre-report estimate of 1.337. Beans were 360 million bushels versus an estimate of 354 million bushels. The early call is 2 cents lower in Corn and 3-5 cents lower in Beans. I feel it is time to look to the short side of the market in Dec. Corn on any further rallies for the near term. Longer term I will be a buyer in Dec. Corn on a 20-25 cent setback if the market allows. We remain long out of the money call spreads in Nov. Beans.
Cattle: Yesterday Live Cattle closed 25-40 higher and Feeder Cattle slightly higher. This mornings Grain report should have a positive effect on Feeder Cattle prices but I feel the upside potential will be limited to the 115.00 area for Aug., Sept. and Oct. for the near term. I continue to look to the short side of Oct. Cattle above the 93.00 level if the market allows.
Silver: Sept. Silver is currently 17 cents higher at 18.04. We remain long the Dec. 20/22 call spread.
S&P's: Sept. S&P's are currently 2.50 lower at 1064.50. Near term support is currently 1048.00 and near term resistance the 1076-1080.00 area. Treat as a trading market between support and resistance. If the market starts trading above the 1080.00 level over the next few sessions I will be looking to establish a short postion between 1090.00 and 1110.00 by either selling futures, selling out of the money calls or buying out of the money puts.
Currencies: As of this writing the Sept. Euro is 54 lower at 1.2626, the Swiss 77 lower at .9463, the Yen 27 lower at 1.1294 and the Pound 41 lower at 1.5113. If you remain either short calls or long puts in the Yen look to take profits. If you are short futures in the Yen lower your buy stop to the 1.1430 level. I continue to hold a short bias (either short futures, short out fo the money calls or long out of the money puts).