Financials: Dec. Bonds are currently 20 higher at 150’04 and the 10 Yr. Notes 9 higher at 133’25. The Bonds continue to work higher as the Fed is scheduled to buy Bonds maturing between Feb. 2036 and Aug. 2042 in a continuence of “Operation Twist”. Resistance remains in the 151’00-152’00 area, levels where I am once again willing to try the short side of the market.
Grains: Dec. Corn is currently 20’0 higher at 736’2, Nov. Beans about unchanged at 1570’0 and Dec. Wheat 19’0 higher at 874’4. This mornings Stocks Report was bullish Corn. Slightly bearish to Beans and friendly Wheat. Corn stocks were below expectations, Beans above expectations and Wheat below expectations.
Yesterday we went short the Dec. Corn 700’0 put and collected about 21’5 cents. This morning I will be looking to take profits at 11’0 cents if the market allows. As for Beans, I am still looking for the Nov. contract to find support in the 1520’0-1540’0 area.
Cattle: Dec. Cattle is currently 30 lower at 124.87 and Nov. Feeder Cattle 107 lower at 146.25. Higher feed grain prices have had the expected effect on Feeder Cattle. I still feel the Dec. LC will find support in the 123.50 area and will try the long side of the market on a sharp break. We have taken profits on the long Dec. Hog/ short Dec. Cattle spread. I will be looking to reinstate this spread at 55.00 premium the Cattle if the market allows (this spread is currently at 51.00 premium the Dec. Cattle). Pig Crop Report this afternoon.
Silver: Dec. Silver is currently 6 cents higher at 34.73. We remain long Silver with a near term upside objective of the 36.00-37.00 level. Dec. Gold is currently 3.00 lower at at 1777.50. I will be a buyer in Gold below the 1720.00 level if the market allows.
S&P's: Dec. S&P’s are currently 5.00 lower at 1436.00. Yesterday we recommended taking profits from recent short futures positions or using a protective buy stop in the 1442.00 area. The market traded as high as 1444.50, triggering our recommend stop, putting us on the sidelines at the moment. We were also long out of the money puts and sold a lower strike price against current long put positions resulting in now holding put spreads.
Currencies: As of this writing the Dec. Euro is currently 13 higher at 129.40, the Swiss 12 higher at 1.0698, the Yen 26 lower at 1.2868 and the Pound 42 lower at 1.6190. I am currently on the sidelines.
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