Financials: Sept. Bonds are currently 17 higher at 150'07 and the 10 Yr. Note 3 higher at 133'28. Initial euphoria over the conservative New Democratic Party winning the Greek election sent Bonds down more than 1'00 (32 ticks) to 148'12 before the reality of now what came into play. Will Greece be able to form a coalition government in the coming days? It seems to me that a new government will choose to stay in the EU, however, they may decide to renegotiate terms of austerity programs. I have been recommending either standing aside or short term trading from the sell side in the last 10 trading sessions. My bias to the short side remains, that being said, I am still not willing to take a long term short position until I see some technicals that confirm a top.
Grains: July Corn is currently 3'0 higher at 582'4, July Beans 7'4 higher at 1383'4 and July Wheat 8'0 higher at 617'4. Hot temperatures and the prospect of showers broke the Corn back to the 580'0 level for the July contract and the 507,0 level for Dec. Lack of substantial percipitation East of the Mississippi over the week has boosted prices for the Dec. by 8'0 this morning. As mentioned last week I am looking to be a buyer in July Corn under the 570'0 level and will also buy Dec. below 490'0 if the market allows.
Cattle: Aug. LC traded 37 lower at 116.65 and Aug. FC 17 lower at 156.02 on Friday. My bias is now to the long side of Aug. LC with long term support in the 114.500 area.
Silver: July Silver is currently 38 cents lower at 28.35 and Aug. Gold 5.00 lower at 1623.00. We remain lightly long Silver.
S&P's: Sept. S&P's are currently 5.50 lower at 1332.00 after a volatile over night session which saw an early high of 1347.50 and a recent low of 1327.25 after the initial results of the Greek elections. Treat as a trading affair between 1322.00 and 1342.00.
Currencies: As of this writing the Sept. Euro is trading 40 lower at 1.2607, the Swiss35 lower at 1.0512, the Yen34 lower at 1.2690 and the Pound 20 lower at 1.5656. As expected the Euro has been highly volatile with an overnight high of 1.2759 and a session low of 1.2590. For short term trading I will use these levels for support and resistance. Of note: the Euro/Swiss crossrate has remained at 1.20 (Euro over Swiss) as the Swiss Bank has constantly intervened to keep this ratio over the last several rates. My question: How long can this go on if the Euro stays weak?
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