Financials: Sept. Bonds are currently 25 higher at 134'15. The long 10 Yr. Note/ short Bond spread is currently at 8'26. losing 10 points for the day. On Friday Bonds were were more than 2'00 points lower and the 10 Yr. Note/ Bond spread came in by more than a full point. Today I recommend rolling the spread into the Dec. contracts as the Dec. will be considered lead contract staring tomorrow and Sept. will be deliverable. This morning U.S. Personal Income came it at +0.2% as compared with with an estimate of + 0.3%. Consumer spending was up 0.4%, in line with expectations. Near term support for Dec. Bonds is currently 131'26 and near term resistance 134'16.
Grains: On Friday Nov. Beans closed 11 cents higher, Dec. Corn 4 higher and Dec. Wheat 6 higher. Over night Beans were 6 higher, Corn 6 higher and Wheat 13 higher. Nov. Beans have broken out to the upside with Friday's close on the Nov. contract above the 1020'0 level. If you remain long Dec. Corn either take profits or raise your protective sell stop to the 431'4 level. We remain long calls and/or call spreads in Dec. Corn. If you are naked long calls in Dec. Corn either sell a higher strike price against your current position or take advantage in the recent run up by rolling your position into a higher strike price.
Cattle: On Friday Live Cattle closed 40 lower to 10 higher with nearby contracts losing to the deferred contracts. Feeder Cattle closed about 40 lower. I still feel these markets will contniue to sell off due to increased feed grain prices and an increase in market ready supplies after Labor Day.
Silver: Dec. Silver is currently 4 cents higher at 19.11. If you remain long Futures either take profits or continue to use a protective sell stop in the 18.40 area. We remain long the Dec. Silver 20/22 call spread. If Dec. Silver should trade above 20.00 this week, I will be looking to roll the long Dec. 20.00 call into the 20.50 call in an effort to take some cash off the table and reduce overall exposure.
S&P's: Sept. S&P's are currently 3.00 lower at 1060.50. This mornings personal income report was slightly disappointning and has taken the market to current levels from an overnight high of 1072.00. On Friday the market covered the gamut of the 1038 support and 1067.00 resistance levels. Treat as a sideways market.
Currencies: As of this writing the Sept. Euro is 18 lower, the Swiss 48 higher, the Yen 87 higher, and the Pound 5 higher at 1.5515. We remain long the Dec. Yen 1.1200 put.