Financials: Sept. Bonds are currently 4 higher at 131'16. This mornings Weekly Unemployment Report showed claims up by 2,000, the market was expecting a decline. At current prices the market has just about reached long term resistance of 132'00 and I am now willing to try the short side of the market for short term trades as we will be against the prevailing trend. The long 10 Yr. Note/ short Bond spread is running at 5'28 and I am also willing to give this try for a short term trade (1-5 days).
Grains: Yesterday Nov. Beans were 6 lower, Dec. Corn 2 higher and Dec. Wheat 1 lower. Over night Beans were 6 higher, Corn 5 higher and Wheat 17 higher. This mornings crop production report showed Corn at 13.365 billion bushels, slightly more than the pre- report estimate of 13.282 and more than last years 13.110. Yields are 165.0 bushels per acre slightly more than the estimate of 164.1. Beans showed production of 3.433 billion bushels as compared with estimates of 3.366 and last years 3.359 billion bushels. The yield came in at 44.0 bushels per acre versus the estimate of 42.9. On the surface these numbers would normally push the market back to a test of support at 406'0 in Dec. Corn
and 1012'0 in Nov. Beans. However traders are looking at robust exports trumping production at the moment and the early call is currently higher. I expect a volatile day. We are currently long Dec. Corn out of the money calls and/or call spreads
Cattle: Yesterday Live Cattle closed slightly higher and Feeder Cattle about 50 higher. Feeder Cattle are currently slight lower and Live Cattle slightly higher based on the Grain Production Report. We remain on the sidelines.
Silver: Sept. Silver is currently 12 cents higher at 18.02. We remain long the Dec. Silver 20/22 call spread.
S&P's: Sept. S&P's are currently 7.00 lower at 1078.25. Yesterday the market broke through near term support of 1086.00 and found support this morning in the 1070.00 area. If you are currently short the market (either short futures, short calls or long puts) I recommend taking profits and standing aside until tomorrow. We have covered our short Sept. 1140 calls in the 8.00 area (currently 6.75).
Currencies: As of this writing the Sept. Euro is currently 48 lower at 1.2830, the Swiss63 higher at .9518, the Yen 54 lower 1.1682 and the Pound 88 lower at 1.5581. The Sept. Dollar Index is currently 26 higher at 82.69. Support for the Euro is currently the 1.2800 level and resistance currently 1.3040. I am on the sidelines waiting a selling opportunity in either the Pound or the Euro. I also recommend the long siide of the Dollar Index below the 80.40 level.