Financials: Sept. Bonds are currently 11 higher at 147'30 and the 10 Yr. Notes 7 highr at 133'17. This morning's Weekly Jobless Claims report showed an increase in claims of 4,000 vs. expectations of a drop of 3,000. Yesterday's release of the FOMC minutes showed continued concern over the unemployment rate, expectations of continued low inflation and economic growth and continued extention of low interest rates beyond 2014. "Many" of the participants voiced a willingness for another round of Quantitative Easing. The result, a rally from the 146'00 level to 148'00. If you went long over the last couple of sessions on breaks (see Tuesday's report) take profits and stand aside. Support is now 146'28 and resistance 149'08. On Monday I will start quoting Dec. contracts.
Grains: Dec. Corn is currently 6'4 lower at 828'2, Nov. Beans about unchanged at 1728'0 and Dec. Wheat 1'0 higher at 918'0. Rumblings about reducing the amount ethanol required in the gasoline mix should keep Corn highly volatile. Any reduction will certainly hurt demand and put a cap on this market despite a reduced crop. On the other hand, if no action is taken Corn will probably hold above the 785'0 level. At the moment we continue to hold the combination of short the Dec. Corn 680'0 put and short the Dec. Corn 900'0 call.
Cattle: Oct. LC is currently slightly lower at 124.40 and Oct. FC slightly higher at 143.12. We are currently on the sidelines. The long Dec. Hog/ short Dec. Cattle spread continues to widen and this spread is now 200 points against me. An approximate 20 % increase in pork supplies over a year ago has independantly pressured the Hog market. I feel that overall demand will increase for pork because of the price disparity compared with beef.
Silver: Sept. Silver is currently 1.00 higher at 30.63 and Dec. Gold up 27.00 dollars at 1667.00. We remain long silver and look for resistance to come into play above the 31.00 level. If you remain long it is time to roll your position into the Dec. contract. As mentioned Tues., Gold broke out to the upside with trades above the 1625.00 level. This market isnow approaching resistance in the 1665-1680.00 area. If you remain long either take profits or use a close stop.
S&P's: Sept. S&P's are currently 3.50 lower at 1408.75. Tues. the market made a new high in the 1424.00 area and closed lower for the day providing a near term sell signal. Support in the 1408.00 has been marginally violated with yesterday's low of 1404.25. Near term support is now the 1395.00-1403.00 area. Resistance is the overnight high of 1418.00. I still prefer the short side of this market.
Currencies: As of this writing the Sept. Euro is trading 19 higher at 1.2551, the Swiss 18 higher at 1.0454, the Yen 31 lower at 1.2724 and the Pound 7 higher at 1.5872. The Euro has now closed above the 1.2475-1.2525 near term resistance levels. I will now be looking to go short the Euro in the longer term resistance area of 1.2675-1.2750 if the market allows.Regards, Marc888.908.4310 | firstname.lastname@example.org