Financials: Sept. Bonds are currently 29 higher at 126'31 and the 10 Yr. Notes 22 higher at 125'06. GDP came in this morning at a disappointing 1.3% vs. pre-report estimates of 1.8%. The market is now above the 126'20 resistance level and looks poised to test the high made July 12th of 127'15. I still remain on the sidelines. I will, however, be willing to go long 10 Yr. Notes/ short Bonds at 2'07 premium the Bonds if the market allows (the spread is currently at 1'25 premium the Bonds). The market is still awaiting Debt Ceiling news.

Grains: Yesterday beans closed 9 cents lower, Corn 9 lower and Wheat 11 lower. Over night Beans were 5 lower, Corn 6 lower and Wheat 2 lower. We remain long out of the money call spreads in Corn. Support for Dec. Corn is currently 665'0 with resistance 692'0. I suspect the markets will be range bound until the Aug. 11th Crop Report.

Cattle: Yesterday Live and Feeder Cattle closed moderately higher. Support remains at 109.00 for Aug. LC and 135.00 for Aug. FC.

Silver: Sept. Silver is currently 42 cents higher at 40.21. We continue to hold a small long position. Resistance remains in the 41.00 area. Dec. Gold is currently 8.00 higher at 1624.00. Depending on whether or not a Debt Ceiling compromise happens over the next few days these markets could get quite volatile. Use caution, i.e. close stops.

S&P's: Sept. S&P's are currently 12.00 lower at 1284.50. Debt worries and a disappointing GDP number have been pressuring the market since early last night. Yesterday we sold the Sept. 1300.00 put against current short positions and will just sit with the positions for the moment. Support is now the 1275.00 area.

Currencies: As of this writing the Sept. Euro is 28 higher at 1.4320, the Swiss 164 higher at 1.2644, the Yen 111 higher at 1.2970 and the Pound 28 higher at 1.6364. I am on the sidelines.



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