Financials: Sept. Bonds are currently 14 higher at 129'14 and the 10 Yr. Note 12 higher at 126'17. The long 10 Yr. Note/short Bond spread is currently at 2'29 premium the Bonds putting our position in the red by about 20 points (-$625.00). It seems to me that some analysts are looking at the Debt Ceiling and spending reduction package as negative to job growth, i.e. if the government cuts spending by 2.4 trillion over 10 years, job growth will suffer. Long term resistance in Sept. Bonds is currently the 130'15 area with support currently at 127'00. We continue to hold the long 10 Yr. Note/ short Bond spread.

Grains: Yesterday Beans closed 4 higher, Corn 15 higher and Wheat 4 higher. Over night Beans were 2 higher, Corn 2 lower and Wheat 1 lower. We remain long out of the money call spreads in Corn. Dec. Corn continues to appear range bound between 665'0 and 692'0.

Cattle: Yesterday Aug. Live Cattle closed moderately higher in resistance at 113.30. Aug. Feeder Cattle closed about unchanged at 136.825 after approaching the 139.00 resistance area (the high was 138.725) and failing. I am once again looking to the short side of both of these markets for the near term on rallies. Long term Live Cattle remains positive. Tomorrow I will start looking at the Oct. contracts.

Silver: Sept. Silver is currently 85 cents higher at 40.16. We continue to hold a small long position and remain cognizant of overhead resistance in the 41-42.00 area. Gold is currently 17.00 higher at 1639.00.

S&P's: Sept. S&P's are currently 4.00 lower at 1275.75 after making an early morning low of 1266.00. Weak economic fundamentals (GDP, ISM Manufacturing Index to name a couple) has trumped the Debt Ceiling compromise for the moment. We continue to hold the combination of short futures and short the Sept. 1300 put. For short term trading I prefer the long side of the market from below the 1270.00 level.

Currencies: As of this writing the Sept. Euro is 12 lower at 1.4237, the Swiss 74 higher at 1.2875, the Yen 16 lower 1.2959 and the Pound 44 lower at 1.6248. In the face of the never ending rally in the Swiss, I'm looking for cheap out of the money puts.

Regards,

Marc
888.908.4310 | 312.264.4310
mnemenoff@pricegroup.com